Rural News 17 February 2015

ANIMAL HEALTH Farmers are urged to treat their dogs like any good worker. PAGE 40

MACHINERY Hundreds converged on Levin at the annual vintage machinery event. PAGE 45

RURALNEWS

MANAGEMENT Consultant shares advice on how best to get through a drought.

PAGE 32

TO ALL FARMERS, FOR ALL FARMERS

FEBRUARY 17, 2015: ISSUE 578

www.ruralnews.co.nz

More China dairy concerns? PETER BURKE peterb@ruralnews.co.nz

THE MINISTRY for Primary Industries denies holding ‘special’ meetings with New Zealand dairy product makers in the light of claims that China has rejected 60 batches of our dairy products in the past year. A Chinese website claims that 14%

of the products rejected by China came from New Zealand. But officials and industry sources here are playing down this news. MPI told Rural News it regularly briefs the dairy industry on market developments; some briefings are “highly confidential”. It says two meetings were held last week: one on a new manufacturing

standard for infant formula, on which they consulted the industry last year; the other to “confidentially” brief manufacturers on commercial and marketsensitive issues. MPI would not describe the briefing or who attended, other than to say it was not about the rejection of product by China and the recent stories about this issue.

Rural News asked whether New Zealand product had been rejected as contaminated; MPI responded: “In the 12 months to December 2014, there were only five instances when products were rejected due to the presence of bacteria, one due to chemical residue. These six instances represent about 0.06% of total dairy exports. If products do get stopped, it

is mostly due to administration errors, such as damage in transit and non-compliant labelling. It often involves trade samples as well as normal commercial trade. “These issues rarely relate to food safety matters.” Industry sources support the MPI statement, one confirming the affected items are often trade samples. Others express concern at the developments and hint that the Chinese are seeking to find fault with infant formula exporters to their country. These sources suggested to Rural News that moves by the Chinese to buy their own processing plants could be part of a long-term strategy to put the squeeze on small New Zealand exporters, especially in the highly competitive area of infant formula. Meanwhile, MPI says it has a “constructive and respectful” relationship with Chinese authorities and will continue to work with them and manufacturers to resolve trade issues.

STRIKING OUT AT NITRATE A new device (Spikey) which combines robotics, mechanics and chemistry is set for sale to combat dairy farms’ problem of nitrate-N leaching from cow urine patches. Mini-ME (Miniaturised Management of Excreta) is a robotic device which tows Spikey which detects urine patches and sprays them with a liquid nitrogen inhibitor that allows the urine-N to spread beyond the patch to encourage greater grass growth in and around it. It’s the work of three men: Bert Quin (far right), well known in the fertiliser industry; Geoff Bates, a robotic specialist; and a soil chemist, Peter Bishop. They showed their device to people attending the Fertiliser and Lime Research Centre conference at Massey University last week. – More page 6 and more from the conference in this issue.

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RURAL NEWS // FEBRUARY 17, 2015

NEWS 3 ISSUE 578

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Soils can take pressure PETER BURKE peterb@ruralnews.co.nz

NEWS ������������������������������������1-21 WORLD ������������������������������������� 22 MARKETS ������������������������ 24-25 AGRIBUSINESS �������������� 26-27 HOUND, EDNA ����������������������� 28 CONTACTS ������������������������������ 28 OPINION ���������������������������� 28-31 MANAGEMENT �������������� 32-38 ANIMAL HEALTH ���������� 39-43 MACHINERY AND PRODUCTS ����������������������44-49 RURAL TRADER ������������ 50-51

THE DIRECTOR of Massey University’s Fertiliser and Lime Research Centre (FLRC), Professor Mike Hedley says while intensive farming puts pressure on New Zealand soils he believes they are presently capable of handling that pressure. Speaking to Rural News at the annual FLRC conference at Massey last week, Hedley said that, in general, soils on lowlands or rolling hills can take the pressure – except in one or two small areas. Meanwhile, pressure on soils will decline as regional council water quality rules start to take effect. These are likely to limit stock numbers, leading to less degradation of soils. Hedley says New Zealand generally

pamelat@ruralnews.co.nz

Phone: 09-307 0399 Fax: 09-307 0122 POSTAL ADDRESS PO Box 331100, Takapuna, Auckland 0740 Published by: Rural News Group Printed by: PMP Print CONTACTS Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz ABC audited circulation 81,188 as at 30.06.2014

“This pasture pumps identify those areas organic matter into the soil and plant them with which helps the structure. poplars or comIt enables air to move in mercial forests, and out of the soil, and so that’s probawater to drain freely bly the solution from the soil…. Good and it will lead to agricultural practice be more land use focuses on putting change.” pasture into rotation.” Hedley sees difMore education on ferent problems arishow to manage soil is ing with soils used for needed, Hedley cropping and commersays. A lot cial vegetable growing. of science “With arable farming Prof Mike Hedley is available the key thing in a lot of our but people fine-texture soils is that their structure is maintained by soil organic need their memories ‘refreshed’ about matter. All arable programmes, in the practice. This will happen in part respect of good agricultural practice, with new environmental regulations as should have a renovation phase when farmers are forced to look more closely at how they manage land. the soils are put back in pasture.

Fonterra wants to ‘mix it’ PAM TIPA

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treats pasture soils on the lowlands and rolling terraces very well. Pasture provides energy for the soil and for the livestock that graze it. “Perhaps there are a few soils where we might do a bit of treading damage in winter but we have all the technology to improve that. This is the classical area in New Zealand that we don’t do too well.” The decision many years ago to plant pasture on steep slopes is now causing sediment to erode from hillsides into rivers, one of New Zealand’s biggest water quality problems. “It can take 25-30 years for a raw slip to regenerate a topsoil. If that was on a productive area of a farm and you wanted to regenerate it I think we have the technologies to renovate them faster. “But of course, the idea now is to

THE MISSION of mymilk is to “mix it up” with competitors rather than lose that milk, says Fonterra’s chairman John Wilson. “There has been some concern about whether mymilk is part of the cooperative or not,” he told the Northland Dairy Development Trust annual conference. The new subsidiary is “specifically for 5% of our milk only and not any more”. “This is quite frankly to get out there and mix it up,” says Wilson. “Not all farmers believe in joining the cooperative. We are getting farmers particularly in Southland and Canterbury – where we’re offering mymilk – who are saying clearly, ‘no, we don’t want to buy shares, we just want to supply milk’. “That means we lose that milk and we have assets in Canterbury and Southland that are highly efficient and

can process milk more efficiently than the average plant in New Zealand. “So where we can secure that milk, understanding its transport cost, paying less than the milk price and processing efficiently – it has to be advantageous to the cooperative. “Mymilk is a standalone subsidiary of Fonterra. “It only has three or four people

working in it…. Its job is to secure milk and prove to us it is profitable to do so, to get out there and mix it up… with competitors instead of sitting back and losing that milk… get that in and get that asset utilisation. “Important here is that it must be profitable for the cooperative and it will be limited to 5% of our milk.” Announced in December, mymilk

will initially invite applications from farms in Canterbury, Otago and Southland not currently supplying Fonterra, for one year contracts renewable for a maximum of five years without the obligation to purchase Fonterra shares. At any time mymilk suppliers can apply to join the cooperative, buy shares and supply Fonterra directly.

IRD – we’re here to help! NOW THAT drought has been declared by the Primary Industries Minister Nathan Guy, Inland Revenue says it will exercise discretion towards affected farmers. The drought has been declared a medium-scale event on the east coast of the South Island from North Otago to Marlborough inclusive. A spokesman for Inland Revenue

told Rural News IRD will look at the financial situations of farmers to see how best to help them through this tough time. Relief options include income equalisation deposits, for which discretion is allowed to make it even more useful, and assistance with the payment of tax when there is hardship.

The income equalisation scheme allows farmers to better manage peaks and troughs in their income by allowing money to be put aside from a better year and withdrawn against a not-so-good year. This preserves cash that can be applied for drought recovery and helps average tax rates for the year. • More on drought pp 5, 6, 12

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RURAL NEWS // FEBRUARY 17, 2015

4 NEWS

Cereal yields okay, so far ANDREW SWALLOW

THE SOUTH Island drought doesn’t seem to have had too much impact on crop yields to date, particularly where irrigation’s been available. Barley sown in the autumn or winter on heavier dryland has generally come in at average or only slightly below par; where irrigated the sunny season’s seen better than average output and one, as yet unconfirmed, report of a world record. Unsurprisingly, given

the fine weather, progress is well ahead of normal with some early wheats taken already too. “Part of the problem getting cultivar trial results is the guys have been so busy harvesting,” said FAR’s research manager cereals, Rob Craigie. Last week he wasn’t able to relay the detail of what’s been done so far but did have some averages from sites in Canterbury. Autumn sown barley off dryland at Chertsey averaged about 8t/ha, compared to a four year

mean of 8.5t/ha, while irrigated plots were in the 12-13t/ha range, suggesting an average a little over the 12.2t/ha four year mean. Meanwhile at FAR’s St Andrews site in South Canterbury dryland barleys averaged 9.4t/ha. “That’s pretty good for autumn sown barley and it was off a lighter soil for the area, not one of the stronger clays.” Dryland wheat plots at St Andrews came in at a “pretty pleasing” 9.5t/ ha while inland at Fairlie wheats averaged 10.5t/ha,

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again without irrigation. “It will be interesting to see how yields across the district compare,” says Craigie. “If those are representative of dryland yields this year I think growers will be pretty pleased.” Feed wheat trials at Bulls, Rangitikei, did similarly well averaging 11.4t/ ha, “quite a good result” for the site. Barley there hadn’t been cut last week as it was spring sown. Chair of Federated Farmers Grain and Seed in South Canterbury, Colin Hurst, says winter wheats in the region have done “surprisingly well” though where sowing conditions were compromised by the wet in April they’ve suffered. “They’ve been doing 6t to 10t off dryland depending on the soil. The test weights have been good and they’ve thrashed out well.”

A big plus on his own farm at Makikihi was four days harvesting without having to dry grain. “Some farms have finished their harvest. That would be three weeks earlier than normal.” Dryland ryegrass seed crops have “really suffered” in the dry, with yields down about 50% but autumn sown barley, like most wheats, has been good. “Spring barley is pretty ordinary though. It’s short and the straw’s just pulverised. It’s not unexpected given the rainfall we’ve had.” In Mid Canterbury Hurst’s Feds counterpart, Joanne Burke, says from what she’s heard barley yields off irrigated land “have held up quite nicely at 10-11t/ha” but off dryland they’ve “lost about 4t/ha” coming in at 5.5-6t/ ha. “It all depends. It’s

been very patchy.” On their own farm just inland of Rakaia dryland barley looked good but failed to deliver despite good silt loam soils. “It had good heads on it but the grain size was horrifically small. That’s where it lost the yield.” High winds, mostly hot norwesters with an occasional southerly cooler, did the damage, she believes. “We had them pretty well all through December.” Straw yields from irrigated crops have been good and with burning banned due to fire risk every bit’s been baled. Dryland straw volumes are probably half what they would be in a normal year so whether there will be more available overall compared to when some is burnt remains to be seen. One thing’s certain: it’s in demand.

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“We’ve got every merchant wanting to snap up any straw they can and all the contractors are doing the same. It’s going to be an interesting situation until we can sort out what’s actually out there.” Back in South Canterbury but off much lighter land than FAR’s St Andrews site, Peter Scott says his irrigated autumn sown barley “probably went about 8t/ha, but we put quite a bit of water on it. We went over it three times [with gun irrigators] where we’d normally only go once.” Given the season and that his barley paddocks by Timaru airport are “some of the lightest ground in Canterbury” he said he was “pretty happy with that.” “The key was we got it in reasonably early. If it had been a spring crop I would have expected it would do half that.”

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RURAL NEWS // FEBRUARY 17, 2015

NEWS 5

It’s official: drought! OFFICIAL DECLARATION that the South Island’s drought is a medium-scale adverse event has been widely welcomed by farmers and their representatives. Primary Industries Minister Nathan Guy made the announcement at a meeting of about 40 rural leaders, near Lake Opuha, last week before meeting media overlooking the dam for a photo call. “The feedback from the meeting was that farmers have made early decisions… and by and large are coping well but the concern is the longterm forecast is for not a lot of rain,” he told Rural News. Besides the immediate financial impact, which a speaker at the meeting said would already be $170-200,000 for a typical 3000 stock unit sheep and beef farm, the forecast means lack of winter feed is a mounting concern, said Guy. MPI is working with Federated Farmers to compile an inventory, which will also include an assessment of likely PKE imports. “We need to make sure there’s enough PKE coming in for the dairy industry and others that decide to use it.” The adverse event declaration makes funds available for Rural Support Trust activities, facilitates tax tools such as

provisional tax deferral and income equalisation, and provides welfare support in cases of extreme hardship. Asked if the tax measures had come in time for deferral of provisional tax payments, the Minister answered the declaration “makes it easier for IRD to realise farms are in particular affected regions and are getting the necessary support.” He declined to compare the scale and extent of the current drought with previous events which triggered declarations in the North Island. “This is different. There’s a higher demand on irrigation across the South Island… I wouldn’t want to compare it with other droughts.” Mackenzie Basin farmer Andrew Simpson was at the meeting and said it was good that Government has recognised the drought is a big issue. “The winter feed issue is going to be critical… and there’s real concern for the store stock sales and whether everything’s going to find a home.” Cast for age sales and autumn calf sales could also prove a problem, he warned. “There could be an impact on the calf sales. It will depend on demand from the North Island.” And as if feed wasn’t short enough anyway, rabbits are on the rise too. “This is a season just made for rabbits. It needs to be recognised the

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impact they’re having… The South Island high country is in real need of the new strain of the calici virus.” Greg Anderson, who farms upstream of Lake Opuha, was also at the meeting and welcomed the Minister’s announcement. “I’m pleased with what they’re trying to do. It recognises the stress that’s out there in the rural community. It’s no silver bullet and there are no hand outs of money but there is some help for the Rural Support Trust.”

Opuha Dam chief executive Tony McCormack (left) and Primary Industries Minister Nathan Guy at last week’s official drought declaration.

The ability to put money from capital stock sales into IRD’s income equalisations scheme, and take it back out without the normal mandatory six month wait, would be a real benefit of the declaration, he added.

“My concern is if we don’t get autumn rain is where will the stock go in winter. If the feed crops don’t yield we’ll either have to buy in feed of sell capital stock.” Already all lambs have had to go store, where

they’re normally finished, and while he “got lucky” sending a truckload away just before the price crashed, his average will be “$60 per lamb if I’m lucky, more likely mid 50s” compared to an $82/head average last

season. And with the rams due to go out in a couple of months, it looks likely next year’s income will be hit too. “My aim is to lose as little as possible this year, and not lose it again next year!”

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RURAL NEWS // FEBRUARY 17, 2015

6 NEWS

Farming within limits, complex PETER BURKE peterb@ruralnews.co.nz

FARMERS IN New Zealand are starting to ‘cotton on’ to the concept of farming within environmental limits. That’s the view of associate professor Graeme Doole, who specialises in environmental economics at Waikato University. He told delegates at the recent Fertiliser and Lime Centre workshop at Massey University that farming within limits is a new and scary concept to many farmers. Farmers tend to be focused on production and use this, rather than profit, as their yardstick of success. Many regard boasting about profit as obscene and some don’t know their profit until their accountant has done their books, he says. In New Zealand production

is seen by the wider community as an indicator of regional vitality. “They say if we withdraw milk production out of a regional economy it will [diminish] the number of jobs in the processing sector. They also say production… is important so we can retain our existing markets overseas.” But Doole says the issue is more complex than that and there is a link between production and nitrogen leaching which is a major issue on dairy farms. In catchment areas where nitrogen loss is an issue in water quality, farmers are faced with having to downscale production to comply with limits. “So that’s the dilemma. But there are creative ways to solve that. We’ve found in some applied work that at a milk price below $7.00/kgMS farmers can

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produce less but make more money. “If you over-intensify a farm – especially with expensive infrastructure or by carrying too much stock – you can end up producing more but making less money because of the marginal cost of the feed.” Doole says they have evaluated cow house systems, which

ARE THEY TAKING THE P#SS? PETER BURKE peterb@ruralnews.co.nz

cost $750-$1000 per cow, and these usually show a reduction in nitrogen leaching of 15-20% if they are well managed. But on less well managed farms the reduction in nitrogen leaching can be as low as 3%. “We are also getting a tendency towards very expensive cow house systems, especially in the South Island – $4000-$5000 per cow, especially free stall barns. [In that range] people are so highly indebted that they are intensifying to pay the debt and that’s eroding any benefit the system has for decreased leaching.” Doole is confident farmers will adapt to the new rules. They previously coped with the removal of subsidies, though some fell out of the industry, and he expects the present changes will have much the same effect.

A NEW device which combines robotics, mechanics and chemistry is set to hit the market to combat one of the biggest problems on dairy farms – nitrogen leaching from cow urine patches. Mini-Me is a robotic device that tows Spikey, which detects urine patches and then sprays them with a liquid nitrogen inhibitor to defuse the patch and encourage greater grass growth around it. It’s the work of three men: Bert Quin, well known in the fertiliser industry; Geoff Bates, a robotic specialist; and a soil chemist, Peter Bishop. They demonstrated the device at the recent Fertiliser and Lime Research Centre conference at Massey Uni-

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versity last week. Bates says the pollution source on dairy farms that hasn’t been able to be controlled until now is leaching nitrates; the worst culprit is cow urine patches. “The urine patches are concentrated and the grass can’t absorb it,” he says. Spikey is fully operational, for towing around paddocks by a quad. MiniMe, the robot, is in the final stage of development. The plan is to hitch Spikey to Mini Me and unleash them on paddocks. Quin says the spikes on Spikey cut through herbage in a paddock and ensure the sensors and the spray equipment work properly. The prototype on show has the spikes exposed, but in the commercial version these will be covered, much like a lawn mower.

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RURAL NEWS // FEBRUARY 17, 2015

NEWS 7

Lower prices the main problem ANDREW SWALLOW

THE SOUTH Island drought has already hit most drystock farmers hard in the pocket and the concern over winter feed is mounting. “The biggest issue is most farmers have had to sell stock at much lower prices than they were expecting so financially they’re already well behind,” Federated Farmers South Canterbury Meat and Fibre chairman Miles Anderson told Rural News. “In many cases they’re going to have to buy in feed too so their costs are going to blow out as well.” On his farm he’s already feeding out to all ewes, using wholecrop barley silage made in December. “That was a cash [grain] crop I had to turn into feed. It was a good crop too.” The overall feed situation in the area is already “fairly dire” and getting worse every week without good rain. Last Monday’s 10-15mm was a lifeline to brassica and beet feed crops but didn’t revive pastures which have browned off even on the most reliable south faces. Anderson says even without the drought the winter feed situation in

the area would have been tight and now winter feed crop yields will be down and stocks of baleage and silage are being eaten into already. Most farms have offloaded young stock already, many having to sell lambs that would normally be finished as stores. “I sold 300 stores in November for $85/head because I could see it was getting dry then, and another 200 in the first week of January for $70-71/head,” says Anderson. “We normally finish all our own lambs and buy in more to finish in the winter.” This year that’s definitely not going to be an option but he is still hopeful his brassica and fodder beet crops will provide for his 1600 ewes and 400 replacements. “We will batten down the hatches and try to keep hold of our capital stock. We don’t want to be in the position of having to buy back into capital stock when it rains because the drought’s so widespread it’s going to be difficult to get back in. If it was just South Canterbury you might take the risk.” His brassica winter feed, direct drilled in November into pasture that

No response: 13mm of rain last Monday failed to revive South Canterbury’s parched pastures, says Feds’ local meat and fibre chair, Miles Anderson.

had been sprayed out two months previously, is still only 20cm high. “After two months [growth] we’d normally expect it to be two or three times that – 50cm tall at least. But the plants are there so they should survive.” Fodder beet – 4ha of it and the first time he’s grown it – is “surprisingly

good too,” he adds. “I thought it would die but it seems to be a pretty hardy plant.” Crucially though the paddock had been fallowed all winter so there was moisture to depth in the seedbed. “It just needs rain too.” So far he says most farmers in the

area seem to be coping with the stress. “Sheep farmers are used to disappointment,” he quips. “But if it drags on it will be a good idea to keep an eye on your neighbours and keep talking. It’s not so bad when you realise everybody is in the same boat.” TO PAGE 12

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Number 8 wireless How Kiwi farmers are using data to meet demands An impending global food shortage and strict environmental regulations are forcing farmers to rethink the way they work. The world population is expected to increase 47 per cent, to 8.9 billion, by 2050, which presents both a challenge and an opportunity. To sustain this massive population growth and meet increasing food demands, the agriculture industry must double its output in the next 30 years – despite little new arable land and water. Things are hotting up Earlier this year the CSIRO and Bureau of Meteorology released data showing that the global average temperature is expected to increase by 4.8 degrees Celsius by the end of this century. This could reduce average annual rainfall totals, resulting in more droughts as well as heavier rain leading to flooding. Meanwhile the United Nations’ Food and Agriculture Organisation predicts a rise in global temperatures of just 1 degree Celsius would slow the rate of growth for corn by 7 per cent and wheat by about 6 per cent – not ideal when your goal is increased production. But help is at hand. Entrepreneurs are busy developing innovative land management tools that help streamline efficiencies, increase productivity and lessen environmental impact. They can

even help improve the bottom line. It’s hardly surprising that farming is reinventing itself to embrace the digital age. Kiwi entrepreneurs are smartening up the farm New Zealand developed technology is playing a big part in increasing agribusiness efficiency. Take Precision Farming, a system that allows farmers to see when, where and how much fertiliser has been deposited using satellite GPS technology installed in the vehicle spreading the fertilizer. Data is sent via Vodafone’s nationwide 2G network to Precision Farming’s secure server which then overlays that information on a computerised map. By avoiding wastage, Precision Farming helps farmers save time and money and create less environmental damage.

WaterForce uses Vodafone’s machine-to-machine network to measure soil moisture and monitor water levels, while SCADAfarm technology monitors the irrigation pumps for pressures, flows and faults, and enables remote ‘on and off’ control of pivot irrigators as well as the ability to adjust the amount of water used. The data can be accessed on any internet capable device, with text and email notifications also available. New Zealand company Trackit has developed a Livestock Tracking and Management System, which combines High Frequency RFID and GPS technologies to maintain individual livestock real-time data on milking, medication, financial details and productivity. The system is driven by a web-based platform and accessed via an iPhone application to help farmers easily manage their herd for improved productivity and better health. What’s more, with increasingly tight environmental regulations, accurate online records help farmers prove their compliance with local bylaws. It’s just another way smart farm solutions are a welcome addition to a farmer’s toolkit.

Ensuring the farm’s soil moisture levels are optimal for retaining nutrients within the soil root zone is better for the crops, the environment and the budget.

The smart farm – putting connectivity to work A farm in the future will look very different to those today. Imagine drones doing regular

fly-overs to help monitor and record plant health, water usage and pesticide dispersal. Automated machinery could plant, till and manage crops, ensuring precisely the right distance between plants and delivering the best possible water regime. Genetically modified seeds could adapt to the conditions of where they were planted to maximise yield and cope with climate stresses. While these systems are not integrated the world over yet, some major shifts are already happening. Smart power systems, precision agriculture tools, farm management software and affordable sensors enable farmers to centralise controls, increase efficiencies and enhance on-farm safety and productivity. But that’s not all. Real-time data helps farmers identify problems instantly and even solve them remotely. Times are changing As new ideas flood the industry and the consumerisation of IT shifts software onto smartphones and apps, and data storage moves to the cloud, technology is more affordable and easier to implement. High-speed internet and wireless

networks extend from the office to sheds, while machine-to-machine (M2M) solutions transform the way rural businesses operate by enabling multiple business devices to connect and communicate. That means farmers can kiss walkie talkies, excel spreadsheets and notepads goodbye in favour of smartphones, tablets and software that automates farming applications. And with a new generation of technology-weaned millennials taking over the family farm, it’s little wonder the uptake on these innovations is picking up pace. The answer for any farm is to be ready for the future by embracing technologies that let you work more efficiently and productively while reducing environmental impact. And the more intelligently your business is connected, the more ready it can be.

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NEWS 9

Long way to go to meet $4.70 PAM TIPA pamelat@ruralnews.co.nz

Fonterra chairman John Wilson says the co-op will update the milk price again this month.

$4.70/kgMS forecast,” Wilson warned. The current forecast dividend of 25-35c will be updated when Fonterra announces half year results in March. Fonterra had a record production year in 2013-14, Wilson says. “What we’re seeing in 2014-15 is a higher peak but now the drought is starting to kick in and it is right across the country. “We’re now starting to see production moving rapidly below the levels of the drought year of 2012-13. “I said two weeks ago that we are 6% behind on a daily basis; at the end of January five days after I put out that

chairman’s update we were 8% behind on a daily basis; this week we are 10% behind. So we’re starting to see it drop quickly.” Wilson says analysts agree that about $3500/t for whole milk powder is needed in the marketplace or milk just won’t be produced. “Farmers will stop producing it – that’s what we’re seeing right now. Farmers are making logical decisions. We’re seeing it in Northland right now… your production up here is 5% down on a daily basis. “Farmers are good business people; you are not going to throw feed in at

so a third of our milk production lifted over 2014 out of Europe.” Russia has since banned imported dairy product from Europe. And Europe has followed the global price down in the last eight weeks so the price at the farmgate has dropped dramatically. “It is the biggest month-on-month drop in the farmgate milk price ever experienced in Europe – paid by the key cooperatives Arla and Friesland Campina; it’s starting to have a big impact. They’re saying they won’t be producing the milk during the next three months because they can’t afford to pay that levy for extra milk. “We have had milk production up significantly in Europe. We’re expecting it to come down over the next 2-3 months but once quota comes off it will be based on the economics of producing milk and so we forsee about 2% growth in Europe.” The New Zealand production forecast is 3.3% down on last year, with a big drop during autumn. Australia is starting to be impacted by dry conditions, but China’s own milk production is up this year and US production is expected to increase.

MOH1163/4

THE GLOBAL Dairy Trade will still have “to travel a lot of distance” to sustain Fonterra’s current farmgate milk price of $4.70/kgMS, Fonterra’s chairman John Wilson says. But he also says that NZ production is now dropping at such a rate that it is falling below levels of the 2012-13 drought. The Fonterra board will update the farmgate milk price forecast again this month under DIRA requirements. Meanwhile, Wilson told the Northland Dairy Development Trust annual conference last week that the September $5.30/kgMS forecast was based on the view that GDT whole milk powder prices would move up to $3500/t by February, March and April. The $4.70 is based on that happening a lot later in the year. But he says the $4.70 still requires prices “to continue to lift from where they are today”. Despite the lift in the February 3 auction (WMP was up 19.2% to $2874/t) “we still have to travel a lot of distance before we can support that

[prevailing] prices if the economics are not there. We’ve seen that response globally as prices start to come down. “The key message fundamental to this forum is that we must watch our cost of production. We’re in a global marketplace and we have to ensure we can produce milk and sustain these prices of below $3500/t because above that is where the grain feed guys start to produce a lot of milk.” Europe has had a good production season, Wilson says. He was there in June and July and has never seen it looking so good. Farmers were producing a lot of everything. “And they were very confident because the quotas in place since 1983 – [like] farming with a brick on their head – are at last coming off, in May. There was a lot of optimism and they were thinking they could produce more milk. When they produced more milk than their quota they were happy to pay the levy because they were getting a high price and producing cheap milk. “At that stage milk production in Europe was 4.3% up – that’s 6 billion litres – remember we’re 18 billion litres

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RURAL NEWS // FEBRUARY 17, 2015

10 NEWS

Water allocation adds to feed shortage ANDREW SWALLOW

THE DROUGHT in South Canterbury has prompted one non-irrigating farmer in the Opuha Water area to question the irrigation firm’s first-come, firstserved water allocation. “The way the water’s

allocated has exacerbated the feed shortage,” says Jeremy Talbot, who farms nearby at Waitohi. “The dairy farms have used it all, in some cases far from efficiently and now there’s none left for the cropping farmers to grow the winter feed that’s so

badly needed.” Cropping farmers miss out because their demand is low mid-summer when combinable crops are ripening but most years they need water after harvest to establish green feeds such as oats or brassica for winter.

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“That’s especially important in a year like this when, given the looming feed shortage, they could plant an increased area to meet the demand. But they’re unlikely to take the risk because the water’s not available,” says Talbot. With the prospect of water running out, irrigation has been running 24/7, even in hot nor’west weather when it should have been turned off to conserve supplies and reduce losses, argues Talbot. “But nobody’s been doing that, even though they’ve been on 50% restriction for nearly two months. Admittedly, on-off irrigation is hard to manage with the scheme’s current layout but that could be fixed with either on-farm or communal storage. There are plenty of sites in the catchment that would need little more than a liner to make a useful pond.” Opuha Water chief executive Tony McCormick acknowledges the different water use patterns depending on land use. “I am aware of the calls by some

On-farm ponds have a place, but more as a buffer than to add storage, says Opuha Water chief executive Tony McCormick

shareholders to review how we allocate water through the season and this will undoubtedly be part of our review of the season and our operation in a dry season.” However, the dam has met demand every other season since it was commissioned in 1999. “[We expect to] be able to supply the reasonable needs of all our shareholders.” With regard to Talbot’s pond suggestion, McCormick says Opuha’s water supply agreements require any stores of water taken from the scheme to have board approval. “Essentially this is because any storage pond operated by an individual irrigator impacts on the reliability of all our shareholders. We are a collective, co-operative company so

it is essential we manage the interests of all our shareholders.” A policy on private storage ponds is being developed. “The concept of ponds that can store water from one part of the season for [use in] another is quite different from anything that has either been built or considered to date. [Storage] is the function of the lake.” The few existing onfarm ponds are typically to buffer storage and allow application rates that may be different from what the scheme delivers, he explains. Onfarm ponds filled in winter could, in principle, improve reliability but many irrigation consents have seasonal limits on them, which could create a problem with winter

filling, he adds. The scheme already has a few ponds downstream of the dam but they are to improve distribution efficiency rather than add storage. For example, adding an 80,000m3 buffer pond has allowed one branch of the scheme to be doubled from 300ha to 600ha. “A pond to ‘store’ just one month’s water sufficient for 300ha would need to be four times larger. The bottom line is there is considerably better ‘bang-for-buck’ in building integrated operational buffer ponds than in building storage ponds on farm. We already have the storage facility in the lake.” @rural_news facebook.com/ruralnews

RURAL NEWS // FEBRUARY 17, 2015

NEWS 11

‘Shear’ hard work for cancer PAM TIPA pamelat@ruralnews.co.nz

LOSING FAMILY to cancer has prompted two Central Otago farmers to hold a fundraising ‘Shear for Life’ marathon on February 28 to March 1. The Teviot Valley farmers, Cole Wells and James Hill, will shear crossbred lambs for 24 hours to raise money for research and treatment of prostate cancer. This attempt is a first in New Zealand by full-time shearers, let alone two farmers who only shear casually. Both men have been in fitness training for months and will continue until the big day. They hope to shear as many as 750 crossbred lambs each. Even though this is not a world record attempt the lambs will still have to be

shorn to a high standard. A supporter, Robert McQueen, told Rural News that Wells and Hill are generous guys seeking to raise money and awareness. They both lost family members to cancer. “It wasn’t all prostate cancer but it was cancer. They decided prostate was a good one to raise money because men can be a bit ignorant, especially cockies, about going along and getting checked.” They have talked to Rotary, Lions and other organisations that have come on board, but the pair have also been flat out shearing, training and getting into the right ‘headspace’ for the event They have so far raised $17,000-$20,000 in sponsorships. They had aimed for about $24,000 but hope to exceed that.

This attempt is a first in New Zealand by full-time shearers, let alone two farmers who only shear casually. Sponsors and supporters are coming “from all over the place” on the day. “It should be a good weekend, a lot of

things are lined up…. It is a big undertaking,” says McQueen. The 24 hours will be split into 12 two-hour

runs, with 30-minute breaks every two hours, and a 60-minute break every four hours. Wells (28) is a stock manager who has worked on stations in New Zealand and Australia. He has never been a fulltime shearer. His grandfather died in 1998 and

his ‘Pop’ in 2003. He and his wife and two children enjoy the farming lifestyle. Spare time pursuits include diving, rugby and hunting. Hill (34) farms at Teviot. He has worked on farms around the South Island and recently moved home to take over

the family farm. His father died recently. As a farmer he has shorn occasionally and is looking forward to the challenge. He has three children and in his spare time enjoys hunting, fishing and playing squash. www.fundraiseonline. co.nz

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RURAL NEWS // FEBRUARY 17, 2015

12 NEWS

Landcorp’s profit plunges PETER BURKE peterb@ruralnews.co.nz

THE EXCEPTIONALLY low milk price has dealt a blow to Landcorp, forcing it to post a half year profit to December 31, 2014 of just $1 million, down 92% on the same period in the previous year. And the news is unlikely to get much better, given the effect the drought will have on the company’s profit in the next six months. Chief executive Steven Carden told Rural News the net operating profit for the year to June 30 will be in the range $1m-$4m. He says Landcorp has done its best to manage the fall in the milk price by taking advantage of guaranteed milk price contracts and by reining

in costs going into the lower payout year. “But you can’t easily offset a 45% fall in the milk price from a large part of your business and replace that through cost savings or revenue from other parts of the business. The better prices for sheep and especially beef helped offset some of the fall in revenue from dairy. But we needed almost a doubling of beef prices to have any sort of impact on the fall in dairy prices. Lamb prices have softened and it hasn’t been quite the strong year in lamb that we’d anticipated.” Carden says Landcorp’s “diversified portfolio of species” gives it more incomes streams as it further diversifies. But its wide exposure to the dairy

industry makes this hard. The company seeks more fixed term contracts for red meat and the same for dairy to counter the volatility of the market. It is looking at new target markets for existing products, e.g. milking sheep and deer leather. And it is selling coarse wool in partnership with Merino New Zealand. “Since I came on board our strategy has been to move away from our concentration on dairy. Our big dairy development near Taupo is increasing our exposure so we’re working hard to find non-dairy opportunities. It’s slow progress… but in some new niche product areas we’re starting to get traction. “We’re starting to

Landcorp chief Steven Carden says costs have been cut, but no short-term measures have been implemented that will need to be reversed later.

reach the point with bovine dairy where there is a ‘glass ceiling’ in terms of the country’s ability to take much more of it.” Landcorp has cut costs, Carden says, but is taking care not to make short term cuts that will need reversing further down the track. Restructuring Landcorp has been to make it more sustainable. “We’ve moved to a totally different level of costs… looking again at how we apply fertiliser… being a lot more precise in our application. “We’re now starting to use the information out of the farm management system to make smarter decisions about the quality of our herds and flocks

and making sure we don’t waste feed. We’re constantly looking at costs in the head office and making sure everything we do in Wellington is adding

value to our farms.” Carden expects the next six months to be hard with the low milk price and the impact of the drought, but looking 12 months out he is more

optimistic. He believes the milk price will rise and prices for red meat will be relatively strong. @rural_news facebook.com/ruralnews

DROUGHT HURTS STATE FARMER FARMING PEOPLE are now much more “climate savvy” than previously, says Steven Carden. Everyone anticipates the effects of droughts and makes better decisions about their businesses. He says the present drought has hit Landcorp farms in the central North Island, parts of

Canterbury and the West Coast, all regions struggling through January. Landcorp has culled cows early in response to the drought – standard practice in the circumstances. And it has not bought many store lambs because of uncertainty about feed.

“People right across the industry have been managing the risk of climate quite well and we fall into that category.” The company now better manages stock on its farms. Farmax is providing much better data on the feed situation, allowing better finishing and breeding.

She was worse in 1969 – farmer FROM PAGE 7

Anderson says the drought is the worst he’s seen since returning from varsity in 1992 but his father Jim says 1969 was worse, though the current situation has similarities to how that started. “1968 was similar. The harvest [in early 1969] was good but

we’d had little rain for the last half of the year, as per 2014,” he told Rural News. “One of the things that helped in 1969 was there was feed inland and in Southland. Now, if sheep farmers need to send stock off farm they’ll find it very difficult because of the

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demand from dairy. “Personally I think it should have been declared a drought by now,” he added, before news of the minister’s trip to the province and subsequent declaration broke. • More on dealing with drought in Management, p32-33.

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RURAL NEWS // FEBRUARY 17, 2015

14 NEWS

Dry bites Fonterra’s milk supply SUDESH KISSUN sudeshk@ruralnews.co.nz

DRY CONDITIONS are also beginning to bite Fonterra’s North Island milk collection, which last month was 110 million kgMS – 1% lower than January last season. The co-op says conditions dried out markedly in January; little rain fell in the North Island and above-average temperatures hit pasture growth. The South Island is an even bigger problem, with dry conditions engulfing the east coast. South Island collection was 69 million kgMS, 5% lower than January last season. “Dry conditions continue to impact milk collection in the South Island and irrigation restrictions remain a threat,” the co-op says. “Some farmers with no capacity to irrigate face drying off early

as the current economics of supplementary feeds do not support their widespread use.” There was some good news for Fonterra in Australia, where milk collection for the seven months to January 31 was 82 million kgMS, 6% higher than the same period last season. The rate of growth has slowed and milk collection there in January was 11 million kgMS, consistent with January last season. Meanwhile Fonterra says EU production in November 2014 was 3% higher than in the same month the previous year, the seventeenth consecutive year-on-year increase. Production in the year to November 2014 was 5% higher than the same period in 2013; equating to a volume of six million tonnes of liquid milk. US

Dry conditions around the country are impacting on Fonterra’s milk collection.

production in November increased 3% over the same month the previous year; production in the year to November 2014 was 2% higher than the same period in 2013. This increase in production in 2014 equates to one million tonnes. Argentina and Uruguay production in November

decreased 7% compared to the same month the previous year. Production in the year to November 2014 was 4% lower than the same period in 2013. While Uruguay production in 2014 dropped 1%, Argentina’s fell almost 5% due to climatic and political challenges. New Zealand exports

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in November decreased 2% compared to the same month the previous year. While exports decreased in November, they are 6% higher in the year to November 2014 than in the same period in 2013. Fonterra says this yearto-date increase is driven by butter rising 22% and WMP 11%. Australian exports in November decreased 1% compared to the same month the previous year. EU exports in October increased 12% compared to the same month the previous year but exports in the year to October

2014 are 5% higher than the same period in 2013. This year-to-date increase is driven by skim milk powder (SMP) rising 48% and fluid and fresh milk 11%. US exports in November decreased 7% compared to the same month the previous year. However, exports in the year to November 2014 are 3% higher than the same period in 2013. This year-to-date increase is impacted by cheese exports rising 23% and SMP 3%. Argentina and Uruguay continue to face challenges with exports, which in November decreased 13% compared to the same month the previous year. Exports in the year to November 2014 are 8% lower than the same period in 2013. This decrease is seen in most major product categories excluding fluid and fresh milk, which increased 25% to November 2014 compared to the same period in 2013. China imports in December decreased 33% compared to the same month the previous year.

This is the fourth consecutive month of decreasing imports. This monthly change is impacted by WMP down 79% and SMP down 58%. However, 2014 imports for WMP and SMP remain strong, both 8% higher than in 2013. Middle East and Africa remains an important market for global dairy trade, importing three million tonnes annually. Imports for October (excluding Algeria) increased 10% compared to the same month the previous year driven by increases in most major dairy categories. Imports in the year to October 2014 are 4% higher than the same period in 2013 with fluid and fresh milk rising 24%, butter 17%, infant formula 11% and SMP 8%. Asia (excluding China) is one of the largest markets for global dairy trade, importing three million tonnes of product annually. Imports for October increased 7.5% compared to the same month the previous year. @rural_news facebook.com/ruralnews

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RURAL NEWS // FEBRUARY 17, 2015

NEWS 15

Storm costs blow budgets PETER BURKE peterb@ruralnews.co.nz

STUNG $250,000 – that has been the true cost, at least, to each Hawkes Bay farmer of a storm that devastated the region in 2011. This staggering figure comes in a research paper by Plant and Food scientist Ian McIvor, who says it’s likely storms in other hill country areas have cost farmers similar amounts. McIvor, researching erosion prevention and mitigation, says his Hawkes Bay project was to get firm data on the economic costs to individual farmers. Until now no-one has asked those farmers how much it cost them to repair the storm damage and how it impacted their farms, he says. “We designed a questionnaire and went to 60 farmers affected by the storm in Hawkes Bay in April 2011,” he told Rural News. “We interviewed them in September 2013….

By then they had got all their accounts in, had had time to reflect and gave us the facts and figures about the cost of repairing their farms.” McIvor says he had no preconceived idea about the cost of repairs. But the $250,000/farm cost set him thinking farmers probably had to borrow this money at interest and pay it back some time. “The amount included the cost of stock deaths, stock trading losses, shifting stock off-farm and paying for grazing somewhere else, or selling it on a flooded market at a reduced price. “In some cases, farmers had to dispose of lambs and other grazing stock before they were ready for sale. It’s also a loss of grazing, because land slippage and silt covered the paddocks and repairs to infrastructure were high. “A lot of stock had to be moved off because fencing had been taken out by the slips so there was no way of managing their grazing

unit especially if a boundary fence went down.” Other major costs were digging out silted up dams and repairing tracks for access to their property.

$250,000 included the cost of a farmer’s labour. Four years after the storm some farmers still haven’t repaired all their damaged fences.

Peter McIvor

HAPPY SHEEP MOST IMPORTANT AN OVERWHELMING response to a sheep welfare survey of farmers, scientists and consumers shows animal wellbeing is of utmost importance to the Australian sheep industry, says Australia’s Sheep CRC. “This survey is a first step to improve our knowledge in this area and to identify new methods to improve wellbeing standards on Australian farms,” says Sheep CRC chief executive James Rowe. “Sheep producers genuinely care for the health and wellbeing of their animals and invest heavily in farm management practices, but protecting animals from threats to their health and wellbeing in extensive operating environments remains a major logistical challenge.” The survey, which received 1530 responses, was run by the Animal Welfare Science Centre, Sheep CRC, University of Melbourne and Meat and Livestock Australia. The CRC’s animal wellbeing programme aims to develop new risk management information, automated animal monitoring and data management systems to support pro-active management decisions. Data from the survey will fine-tune the work. “Further improving wellbeing standards will require a big spend, which the industry is making to ensure Australian sheep are provided with enhanced levels of care and protection,” says Rowe.

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RURAL NEWS // FEBRUARY 17, 2015

16 NEWS

Jury still out on housing cows SUDESH KISSUN sudeshk@ruralnews.co.nz

HOUSING COWS can either lift profitability or improve the environmental footprint but not both, according to a new study. The DairyNZ-led study says investment in a cow

barn can only be profitable through more intensive farming, bringing in more cows and feed. However, a barn without intensification will result in a reduction in nitrogen losses but at a significant cost. Intensifying the farm

system to make the investment profitable can often result in a rapid erosion of environmental benefits. The study collected data from five South Island farms running free stall barn systems – two in Southland and three in

Canterbury. DairyNZ senior economist Matthew Newman and AgFirst consultant Phil Journeaux last week presented the interim results of the study at the Australian Agricultural and Resource Economics Society’s (AARES) confer-

ence in Rotorua. Newman says the jury is still out on whether investing in a wintering barn is a good financial or environmental move. The study shows inclusion of a barn without intensification of the farming system may

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reduce nitrogen losses, but at a significant cost. With good management and intensifying the farming system, the investment in a barn can be profitable but this is dependent on the milk price, feed costs and initial capital outlay, the study finds. Intensifying the farm system to make the barn profitable often erodes the environmental benefits. “Overall, the decision on a barn tends to be either/or – either you make money out of it or you reduce the environmental footprint of the farm. It is difficult to achieve both,” says Newman. The study showed the farmers generally invested in wintering barns for farm management reasons such as reducing pugging of paddocks, better utilisation of supplementary feed, better control of grazing management and feeding, shelter for stock during poor weather, better working conditions and to reduce the cost of wintering cows over the winter. Financial and environmental considerations

Matt Newman

were well down the list. For most farms, a barn incurred the high cost of more or new machinery and other farm infrastructure. However, the cost of similar barns varied a lot. “Incorporating a barn changes the system and most of the farmers in the study were taking two to three years to adjust the system to a level they felt was appropriate. They require a change in management and often more attention to detail, particularly on nutrition,” says Matthew. In general, farmers with barns were trading some of their climatic risks for financial risks, particularly servicing increased borrowings and sourcing appropriate supplementary feed, he says.

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THE FINANCIAL analysis used an investment costbenefit approach calculating the net present value and internal rate of return over a 20-year cashflow, using a base discount rate of 8% real. The base milk price used was $6.50/kgMS. Three of the five farms in the study had a positive internal rate of return but only one had a positive net present value, meeting the 8% discount rate. The analysis considered capital costs and increased operating costs, offset by a reduction in some costs (e.g. less fertiliser) and increased milk solids production. In most cases the barn resulted in increased cow numbers and supplementary feeding levels. Stage two of the study on the economic and nutrient loss impacts of constructing and running cow housing facilities will include a further nine Waikato barns. A final report with full results from the study will be completed at the end of March 2015.

RURAL NEWS // FEBRUARY 17, 2015

NEWS 17

Play straight bat in global markets SUDESH KISSUN sudeshk@ruralnews.co.nz

NEW ZEALAND exporters need to play with a straight bat to maintain trust and reputation in key markets, says Jacqueline Rowarth, professor of agribusiness, Massey University. Rowarth says holding the line on food quality, which includes safety, will make New Zealand animal protein highly desired. “China is likely to remain a major destination, but other countries will also be interested,” she told Rural News. Rowarth was commenting on a report released last week by PricewaterhouseCoopers (PwC) that says New Zealand’s future lies with China despite a slowdown in growth. PwC forecasts China among the fastest growing economies to 2050 and says New Zealand’s trade deal offers more promise. Rowarth says New Zealand has an educated farmer base and enviable resources. “Playing with a straight bat’ will build trust and keep our reputation as honest players/producers with other countries,” she says.

REPORT PROJECTIONS ❱❱ China will clearly be the largest economy by 2030, but its growth rate is likely to revert to the global average in the long run ❱❱ India could challenge US for second place by 2050 ❱❱ Indonesia, Mexico and Nigeria could push UK and France out of top 10 ❱❱ Philippines, Vietnam and Malaysia are also set to be notable risers ❱❱ Colombia and Poland will grow more strongly to 2050 than Brazil and Russia. PwC economics director Chris Money says New Zealand’s future truly lies with China and its forecasts reinforce the importance of New Zealand’s focus on Pacific Rim trade deals. “Currently, China is equal with the US in purchasing power parity (US$17 billion each) but by 2050, China’s GDP in purchasing power parity (PPP) terms will treble to US$60 billion, which is 25% higher than the US, and more than three times the combined GDP (in PPP terms) of the EU. “Trade between the fastest growing countries presents opportunities for New Zealand as a transit point for goods and services by air and sea. Links between South America

and China, Indonesia and India present significant opportunities for us as a trans-shipment destination,” says Money. India has the potential to sustain its higher growth rate for longer and become a US$10 trillion economy by about 2020 in purchasing power (PPP) terms, or about 2035 at market exchange rates. But this relies on India making sustained progress on infrastructure investment, institutional reforms and boosting education levels among the whole population. “The importance of New Zealand’s free trade discussions with India are underlined by this forecast as the fastest growing of our largest trading partners and set to become

the second largest economy in the world by 2050,” says Money. The report presents long-term projections of potential GDP growth up to 2050 for 32 of the largest economies, covering 84% of total global GDP and indicates that the world economy is projected to grow at an average of just over 3% per annum from 2014-50 – doubling in size by 2037 and nearly tripling by 2050. But there’s likely to be a slowdown in global growth after 2020, as the rate of expansion in China and some other major emerging economies moderates to a more sustainable long-term rate, and as working age population growth slows in many large economies.

Jacqueline Rowarth, “NZ has an educated farmer base and enviable resources”.

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RURAL NEWS // FEBRUARY 17, 2015

18 NEWS

Time we stopped treating soil like dirt! PETER BURKE peterb@ruralnews.co.nz

SOIL SCIENTISTS need to engage more with society and educate people about the importance of soil. That’s the view of soil scientist Dr Marta Camps of Massey University. Camps is the New Zealand representative on a Food and Agricultural Organisation (FAO) technical panel helping to organise activities to mark World Soil Year in 2015. One initiative by FAO worldwide is an awareness campaign about the everyday importance of soil to everyone on the planet. “Many people now live in cities

and are not connected with farms and where food comes from so we need to raise awareness of the importance of soils to food security,” she told Rural News. “And also about the role soils have on eco systems services, for example in storing carbon, filtering nutrients and its role on hydrology. Soil has many implications for all of us.” In New Zealand it is planned to appoint three young soil graduates as ‘soil ambassadors’. They will work part time and visit schools to talk about soil. “We want to try to break the language problem soil scientists have. It has been a problem for many years because they talk in strange technical

Soil scientist Marta Camps says the growing world population is increasing pressure on soils.

terms and we want to make soil science attractive. It is complex and this can scare people.” Camps points out with rising populations and urban sprawl, the pressure on productive land is increasing. The amount of productive land available to each person is rapidly declin-

ing and FAO estimates that by 2050 a mere 0.1ha will be available. Urban sprawl in places like Auckland highlights the challenges of protecting productive land. Camps is on an intergovernmental technical panel planning to finalise a document on the ‘status of soils’

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RURAL NEWS // FEBRUARY 17, 2015

NEWS 19

Arla makes move in Australia F. Mayer Imports, the country’s biggest importer of cheese products and Arla’s preferred distributor for 30 years. The move is part of Arla’s worldwide efforts to enter new, attractive markets. The co-op is supplied by its 13,500 farmers in Northern Europe. Australia has 23 million consumers, many wanting specialty dairy products, Arla says. “Although the overall Australian dairy market is seeing only low growth rates, the market for specialty cheese is lively and growing,” says Arla’s managing director in Australia, Lars Eggers, who will become the general manager of the joint venture. “Australians want to be inspired by quality food, including artisan cheese…. A rich-food culture is clearly on the rise and we believe we have the prod-

EUROPEAN DAIRY co-op Arla Foods is boosting its dairy presence in Australia in a joint venture with Australia’s largest cheese importer, F. Mayer Imports. Arla says the partnership will extend the success ‘down under’ of its specialty cheese brand Castello at a time when Australians are craving quality, culture and artisan cheese. The joint venture, Arla Foods Mayer Australia Pty Ltd, will market, sell, and distribute imported and local products Castello cheese, Lurpak butter and other Arla products. It will also sell products from other producers in Europe and Australia via F. Mayer. Arla Foods aims to raise annual revenue in Australia from its current $49m to $208m. All Arla’s business in Australia will be through

ARLA FOODS MAYER FACTS ■■

■■ ■■

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Arla Foods to own 51% share, F. Mayer Imports to own 49% Head office in Sydney Marketing, sales, distribution of dairy products, including brands Castello, Lurpak, Arla General manager will be Lars Eggers from Arla Foods The joint venture will on May 4.

ucts to tap into that movement. “We hope to… [drive] the specialty cheese category [with] products that already inspire consumers in many other parts of the world. Castello cheese has

been sold in Australia for 35 years and our partner, F. Mayer, has been sourcing specialty cheese from all the great cheese countries for decades, so we have a good foundation to build on.”

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RURAL NEWS // FEBRUARY 17, 2015

20 NEWS

Price moves more than just the dollar, claims wool man PAM TIPA pamelat@ruralnews.co.nz

THE LOWER dollar is one of the main influences behind the present buoyant wool market but there are other positive indicators, says NZ Wool Services International’s Purelana manager Malcolm Ching. “A fair chunk of what’s happening at the moment is currency related and so the farmer in New Zealand is getting a higher price on a lower dollar,” Ching told Rural News. “It doesn’t mean the client is necessarily paying much more. “In some areas there is market pressure because of supply and demand. You see that in the lamb sector – last year China was asleep on lambs’ fleece. This year they came in on the first lot that turned up on the market. They were in very strongly and have stayed strong all the way through and look like

they will stay here for the rest of the season on lamb – particularly to around 30-31 micron. Once you get past that it’s a little quieter.” Fashion is driving some demand, with Shetland fabric in again this year. Wool of 27-30 micron is mixed with other wools from Malcolm Ching other origins to make apparel or knitting yarn and there seems to be growth in that area. “So fashion is driving the growth, as is the underpinning of the market by the Wools of New Zealand’s Camira contract which requires quite a volume. When you’ve got one area targeted quite heavily then you naturally get this pressure.

“For one reason or another there doesn’t seem to be as much available on the market this time this year. That could be drought related and there’re several factors locally. “The Chinese have been very active as well up to their New Year break, which they are in now for the next two or three weeks; so they did a lot of buying up to that time to make sure they had wool arriving for when they came back. That also put a bit of steam into some of your fine crossbreds and hogget types.” Interesting to note, says Ching, is there is no reduction in demand from Australasia and the Middle East for carpet wools. “We are surprised at that because with the price of oil

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having dropped so much, a lot of synthetic fibres are up to 40-50% cheaper than last year. “With a competing fibre being down so much on the previous year we were anticipating wool would take a significant drop because a lot of manufacturers just look at what fibre is available and what the price is and adjust their manufacture accordingly. “Some of that has happened but not to the degree anticipated which indicates there is now this underlying demand for wool, and we’ve reached a level where it doesn’t seem to matter what happens too much with other things around us, the volume of wool that is required is reasonably static, which is positive. Maybe we have reached that plateau.” There are so many “wildcards” it is too soon to call it a firm trend, says Ching. But it bucks the way clients normally react.

“We have even had people place a 100 tonne order and they come back two days later and want to double it. Normally they would wait three weeks or a month.” The double North and South Island sales held recently, with two more to go, historically can tend to put pressure on supply with more than people are prepared to take on their books. “That hasn’t happened and we are about to finish those double sales and then we go to on sales on alternate weeks. “That puts pressure on the amount of wool available on the market, so we’ve got through the hump of the higher flow volume and yet we’ve got a firm market. “But a lot is dollar related; if we had been in the mid 1980s I don’t know if we’d be saying the same things.” @rural_news facebook.com/ruralnews

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RURAL NEWS // FEBRUARY 17, 2015

NEWS 21

Farmer funding sought for southern hub SOUTH ISLAND dairy farmers aim to raise $2 million within three months to launch a research farm. The Southern Dairy Hub is the best opportunity for southern dairy farmers to get the support they need to continue farming profitably and sustainably, says Southern Dairy Development Trust (SDDT) chair Matthew Richards. “The Southern Dairy Hub is a huge deal. We need to get it… working in partnership for the benefit of southern dairy farmers and the southern community.” The $26.5m project will get $10m from principal industry partners DairyNZ and AgResearch, dependent on local contribution. SDDT will pay $2.5m, generated by the Southland Demonstration Farm; the balance will be debt. Hub promoters last week gathered at the Lochiel, Winton, farm of

Tim and Jocelyn Driscoll to present the proposal and ask southern dairy farmers to help pay for it. The 45 attendees included DairyNZ chief executive Tim Mackle and AgResearch representative Shane Devlin. The Hub needs $2 million from local farmers and businesses by April 30 to go ahead, Richards says. So far 170 farmers and businesses have pledged $383,000. Farmers will rightly question how the hub will benefit them, Richards commented. “This hub will test new ideas, innovation and practices at scale – so we farmers don’t have to. It will address local issues in local conditions, do comparative research and give farmers information we need to make decisions on our farms with some confidence of the likely outcomes.” Southern dairy farmers are under pressure from,

for example, the effect of dairying on waterways. Also, restrictions are likely on new dairy and wintering systems. Richards is encouraging southern farmers to support the hub because the Southland Demonstration Farm ceases operation next year. Mackle says the pro-

Tim Mackle

posed hub “differs from the current demonstration farm in its focus on comparative research so that farmers can access ideas, innovation and options, tested with a degree of confidence and understanding of likely outcomes.” The Southern Dairy Hub is envisioned as a

300-380ha farm milking four herds of 200 cows each and located in central Southland. It would have offices, education facilities and space for industry partners and organisations. www.southerndairyhub.co.nz @rural_news facebook.com/ruralnews

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WOOL SERVICES International (WSI) is helping NZ Merino and Landcorp with plans to develop branded products linked back to the farm, says WSI Purelana manager Malcolm Ching. The Landcorp wool is still on the market, but it is not going to auction so it is not open to the whole trade, Ching told Rural News in answer to a question about reports that Landcorp is now directing all its wool clip through NZ Merino. “It is being channelled through NZ Merino and directed mainly to ourselves and we are working with NZ Merino and Landcorp to try to develop branded and direct products where it is linked straight from farm all the way to the end user. “So we’re working with NZ Merino and with some of our clients offshore to try to use the New Zealand model. I won’t say it’s [exactly] like Icebreaker or Little Perriam because we’re talking different fibres. You’re not in high fashion, you are in the product that is predominantly in carpeting. “But there are clients out there who want to do branded carpet ranges and to do that you need to have a story that takes them all the way back to the blade of grass the sheep are eating. “It takes a long time but you have to start somewhere. The way you start is to build a supply base committed to that type of scenario and be prepared to adjust either shearing patterns, preparation, even some of their breed mix if necessary, to tailor it to something you take further down the market end channel and hopefully attach some value to.” They are dealing with more high-end established mills in Australia and Western Europe. It is early stages; they have been working on it for 12-18 months and it will probably take another three years, he says. By Landcorp coming direct to WSI, the price base is guaranteed to be the market price on the day, so Landcorp is not losing anything. – Pam Tipa

RURAL NEWS // FEBRUARY 17, 2015

22 WORLD

Good year ahead for Aussie sheep farmers AUSTRALIAN SHEEP farmers are set to benefit from strong global demand for lamb thanks to tighter supplies from New Zealand. Lower production looks set to play off against strong demand, says Meat & Livestock Australia (MLA) in its 2015 sheep industry projections. After two years

of record slaughter a decline in production was expected in 2015, though a recovery was anticipated from next year. MLA manager of market information Ben Thomas expects annual lamb slaughter to dip below 20 million briefly, before picking up again next year and continuing a long term slaughter trend.

“We’re expecting the sheep flock to stabilise at 71 million this year before slowly building up by 2019 as more producers look to go into prime lamb production. Prices held up well last year for mutton and lamb even with intermittent drought and such high slaughter. The major challenges this year will be the decline of supply Aussie sheep farmers look to take advantage of New Zealand’s tight prodution.

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against continued strong demand from export markets, forecast to take 55.5% of production. “Mutton fundamentals are also positive because, after two high years of sheep turnoff, the demand for breeding ewes looks solid provided feed and water are sufficient for flock rebuilding.” The international trade will likely remain buoyant because of tighter New Zealand supplies and a weaker Australian dollar. Australian lamb exports are likely to contract 15% to 202,000 tonnes this year, then rise gradually to a record 250,000 tonnes in 2019. Australian mutton exports are expected to decline 27% year-on-year to 136,000 tonnes, after their highest volume in 20 years. A recovery in production by the end of the projection period should

give rise to more exports. Thomas says despite lamb’s niche in the Australian market, domestic supply will stay stretched because, globally, more consumers are wealthier, and market access is easier,

particularly in China. “Demand for lamb from the US, Middle East and China looks bright for our exports, while the smaller markets of Japan, South East Asia and the EU will remain

important.” Live sheep exports are forecast to reach 2.4 million, up 5% from 2014, assuming the trade keeps on. Kuwait, Qatar and Jordan should take 70% of produce.

TIGHTENING BEEF MARKET AUSTRALIAN BEEF farmers are bracing for a market contraction. MLA’s 2015 cattle industry projections are that, after two years of record slaughter and live export, the market is now likely to shrink. Better cattle prices and competition between the domestic and export markets for reduced cattle supplies are forecast, says MLA’s manager market information Ben Thomas. “High turn-off has had a dramatic impact on the national herd: in three years [it will have declined] from a 35-year high of 29.3 million to a twodecade low of 26.5 million by the end of 2016. “We’ve seen an enormous turnoff

of cattle and the flow-on effects are likely to last for the rest of the decade. Whether there is a widespread break in the drought or not, the high slaughter of the past two years will take a toll on supplies while seasonal weather will continue to influence farmgate returns.” Beef exports are forecast to reach 1.05 million tonnes in 2015, down 19% and driven by the expected tightening of the domestic market. However in historical terms this figure will remain high. The US looks to remain the biggest buyer of Australian beef in volume and value terms; the EU is likely to remain Australia’s most valuable market on a per kg basis. All other beef export markets are expected to decline.

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RURAL NEWS // FEBRUARY 17, 2015

BEEF MARKET TRENDS LAMB MARKET TRENDS

MARKET SNAPSHOT 

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BEEF PRICES NI

Change

c/kgCWT

-5

P2 Steer - 300kg

Last Year

5.20

5.25

4.38

5.05

5.10

4.45







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YM - 13.5kg

n/c

2 Wks Ago

Last Year

5.11

5.11

5.56

PM - 16.0kg

n/c

5.13

5.13

5.58 5.60

-5

4.05

4.10

3.50

PX - 19.0kg

n/c

5.15

5.15

-5

4.05

4.10

3.35

PH - 22.0kg

n/c

5.16

5.16

5.61

Local Trade - 230kg

-5

4.95

5.00

4.35

Mutton

MX1 - 21kg

-5

3.10

3.15

3.45

SI Lamb

YM - 13.5kg

-5

4.70

4.75

4.28

n/c

4.98

4.98

5.46

M2 Bull - 300kg

-5

4.70

4.75

4.10

PM - 16.0kg

n/c

4.98

4.98

5.48

P2 Cow - 230kg

-5

3.65

3.70

3.05

PX - 19.0kg

n/c

4.98

4.98

5.50

M Cow - 200kg

-5

3.65

3.70

2.85

PH - 22.0kg

n/c

4.98

4.98

5.51

Local Trade - 230kg

-5

4.85

4.90

4.30

-5

2.58

2.63

3.30

P2 Steer - 300kg

Mutton

MX1 - 21kg

Slaughter 





NI Lamb

Last Week

M Cow - 200kg

Slaughter



Change

c/kgCWT

P2 Cow - 230kg

SI



2 Wks Ago

-5

M2 Bull - 300kg



 

LAMB PRICES Last Week

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  

 

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 



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

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

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



 



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



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 



 



 





 











Export Market Demand



Change

  















 

 

2 Wks Ago

Last Year

5yr Ave

-9

2.44

2.53

2.05

1.99

NZ$/kg

-35

7.30

7.65

5.50

5.56

 

















Procurement Indicator Change

  

 







Last Week

2 Wks Ago

Last Year 5yr Ave

UK Leg £/lb

n/c

1.95

1.95

2.10

1.92

NZ$/kg

-10

8.70

8.80

8.80

8.61

       

 











Change

2Wks Ago

3 Wks Ago

% Returned NI

+0%

60.3%

60.2%

64.8%

66.3%

% Returned SI

+0%

57.5%

57.4%

63.6%

64.8%

Last Year 5yr Ave



2Wks Ago

3 Wks Ago

Last Year

5yr Ave

 

% Returned NI

+3%

71.9%

69.3%

79.66%

73.5%

% Returned SI

+1%

65.1%

64.1%

74.6%

68.7%



Change

Procurement Indicator









 





Last Week

95CL US$/lb

        







Export Market Demand



 

  



 













 

 











 



 









 









 























 

























 



 











 



Venison Prices Change



  

Last Week

2 Wks Ago

Last Year 5yr Ave

NI Stag - 60kg

n/c

6.40

6.40

6.20

6.68

SI Stag - 60kg

n/c

6.27

6.27

6.25

6.90

Beef & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted).

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RURAL NEWS // FEBRUARY 17, 2015

NEWS

PRICE WATCH



BEEF

WOOL PRICE WATCH Change

04-Feb

29-Jan

Coarse Xbred Indic.

+2

4.95

4.93

4.88

Fine Xbred Indicator

+5

5.45

5.40

5.04

Lamb Indicator

+14

6.56

6.42

5.32

-

-

-

-

Cows the primary slaughter focus

Indicators in NZ$

Cows dominated the slaughter scene last week with bull and prime taking a back seat. And with schedule prices for cows over $1/kg less than those for bull and prime, processor margins are significantly higher to warrant the change in focus. Pregnancy testing in either underway or just about to begin and with dry conditions prevailing, particularly in South Island, the flow is likely to continue to rise each week. This, combined with deteriorating market conditions in the US is likely to see schedules remain under pressure in the short term.

US imported market plummets US imported beef prices have plummeted in recent weeks in response to ongoing infrastructure issues at US ports. Issues have escalated to a point where there is just nowhere for incoming product to go. Ongoing labour disputes in West Coast ports have seen product build up and storage and inspection facilities unable to cope. Shipments have been diverted to the East Coast, where faciliites have also crumbled under pressure. There is literally nowhere for product being shipped to the US to go. Importers are largely standing out of the market, as securing any product at this point is labelled very high risk. There are some importers attempting to take advantage of the situation and securing product at very low prices. Last week saw virtually no bidding on product. Reports from the US imply that the labour disputes are close to being resolved, however the backlogs are such that some believe it will take up to 6 weeks to clear before product begins to move freely again

LAMB Lamb slaughter rates higher across country Lamb slaughter rates continue to be significantly higher across the country compared to last season. Schedules continue to fall each week as a result of both deteriorating market conditions and a lack of procurement pressure. The dry is impacting lamb condition and many are not yeilding well. Reports suggest that if slaughter continues at these rates than supply in both islands will run out within a couple of weeks. This might be a good thing for both farmers and processors, because with only two weeks left of easter trade supply remaining and global market conditions weak, prices post easter trade could be under pressure. Ewe space remains very tight across the country, although some companies have eased restrictions this week. Mutton schedules continue to fall.

Limited volumes of short term lambs on offer Store lamb trading operated at minimal volumes last week in both islands. Paddock prices in the North Island were between $2.00$2.10/kg for 28-32kg types. Recent rainfall in some parts has increased enquiry, but at around 40% of schedule, current store lamb prices are not enticing vendors to put lambs on the market. In many cases farmers are opting to kill at lower weights as the returns are better. In the South Island the dry conditions have also forced many farmers to kill lambs down to lower weights this year, which has created a hole in the market of short term forward lambs at 32– 36kgs. Southland buyers are on the look out for these types of lambs, and they are proving few and far between. There are plenty of lighter lambs quoted, but they are hard to find homes for.

DAIRY Declining production boosts WMP prices A faster than expected decline in NZ milk production combined with good export sales in December have finally resulted in lifting WMP prices. Reports suggest that the majority of WMP stocks are now committed. Demand from China remains weak, but the much lower volumes forecast for the GDT auctions through to mid 2015 should underpin prices. SMP prices are unlikely to recover as quickly as the majority of this is sourced from the northern hemisphere which continues to be oversupplied, particulary as Russian sanctions continue to wreak havoc with EU exports.

DAIRY PRICE WATCH Last Year

Mid Micron Indic.









Indicators in NZ$/T Butter Skim Milk Powder Whole Milk Powder Cheddar



















Last Year

+542

4991

4449

5683

+341

3430

3089

6127

+435

3636

3201

6311

+339

5077

4738

6004

1  

 

 



Prev. 2 Wks







Last 2 Wks

Change













 



 

 

 













Overseas Price Indicators Indicators in US$/kg

04-Feb

29-Jan

+2

3.64

3.62

+5

4.01

3.96

4.17

+12

4.83

4.71

4.40

-

-

-

-

Fine Xbred Indicator Lamb Indicator Mid Micron Indicator

4.04





Indicators in US$/T Butter







Last 2 Wks

Prev. 2 Wks

Last Year

+88

2500

2413

5000

+150

2650

2500

5150

n/c

3700

3700

4900

Change +163

Skim Milk Powder Whole Milk Powder Cheddar







3638

3475

4638





 



















      

  











 

vs. NZ Dollar

Last Week 2 Wks Ago 4 Wks Ago Last Year



0.737

0.729

0.782

0.822

Euro

0.650

0.643

0.663

0.605

UK pound

0.485

0.483

0.518

0.504



Aus dollar

0.949

0.936

0.963

0.920

Japan yen

86.38

86.01

93.58

83.82

 





  Nov







US Dollar

 









Jan

Feb

Mar

Apr



UK Pound

  

 Dec





 



 



US dollar

Euro

 

                

CURRENCY WATCH





Overseas Price Indicators Last Year

Change

Coarse Xbred Indicator

 

 

 















RURAL NEWS // FEBRUARY 17, 2015

26 AGRIBUSINESS

Exporter questions China strategy PETER BURKE peterb@ruralnews.co.nz

WHERE’S THE China plan? That’s the question a leading New Zealand exporter of infant formula to China is asking and not getting answers to. Chris Claridge, managing director of Carrickmore Nutrition, says New Zealand government departments and all exporters, including Fonterra, need to work more cooperatively. He says if this doesn’t happen individual companies will get picked off to their detriment and that of the whole country. Claridge exports about 750,000 cans of infant formula to China a year, which are sold in supermarkets and baby shops.

He contracts a company to package his product, but his company is based at his home at Paraparaumu, north of Wellington. Claridge says New Zealand could learn from the way the Europeans operate in the Chinese market. “Look at the Danish. They go in with strong business links, a strong industry and they work co-operatively. They ‘gang tackle’ China whereas any New Zealands strategy is complicated by Fonterra’s position,” he told Rural News. “Fonterra being the dominant player doesn’t engage… with any collaborative actives. You sort-of understand why, because people around the peripheries are small,

but Fonterra operates its own agenda. Their activities are separate from those of the New Zealand Government in China. So the result is there is no articulation between Fonterra and the New Zealand Government in China – there is no China plan.” Claridge says each government agency involved – NZTE, MPI and MFAT – all seem to have China plans, but they are not integrated. He believes the situation is improving, but reckons the absence of Fonterra from the equation remains an issue. “So in Shanghai for instance you have virtually zero articulation between Fonterra and the New Zealand Government. You can argue that this is fine and there shouldn’t be any

because Fonterra is a corporate operation and they shouldn’t work with the government. “But the concept of NZ Inc. doesn’t, in fact, operate because not everyone is sitting down together and talking.” Claridge says it seems they talk only when they absolutely have to. He believes the biggest problem for New Zealand in China is the Europeans. He says following the botulism incident, when, says Claridge, Fonterra and the Government failed to fully mitigate the public relations problem in China, consumers and distributors started substituting New Zealand product with European product. He says the Danes and Irish overtook

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Chris Claridge believes all exporters need to work together to crack China successfully.

us and we moved from third to fifth place in volumes of infant formula exports to China. He notes that the Chinese are buying canning plants in New Zealand as part of a strategy of achieving ‘vertical integration’ via their own supply chains. While Claridge acknowledges that Fonterra operates cleverly in the Chinese market and employs some smart people, he still regards

them as “the best truck drivers in the world”— his way of saying Fonterra is still largely a commodity-based producer doing little in the way of value add. He says the diary giant has concentrated on commodities and ingredients, but doesn’t venture much into high value products the way Tatua and Westland do. Claridge regularly visits China to promote his product. He spends

money on television advertising, running a commercial he made in his lounge at home. He also does in-store promotions and runs seminars for retailers and distributors. He says the Chinese market is difficult to operate in because of its complex rules, cultural issues and the sheer competitive nature of the country. But despite all this he sees a strong future for small niche companies.

RURAL NEWS // FEBRUARY 17, 2015

AGRIBUSINESS 27

Profit ‘review’ by state farmer PETER BURKE peterb@ruralnews.co.nz

STATE FARMER Landcorp is reviewing its full-year profit forecast in the face of a lower milk payout and dry weather. The company turned over $109.8m and made a net profit of $1m for the six months to December 31 last year; it forecasts a full year profit of $1m$6m. But chief executive Steven Carden says the first six months had been challenging and the fullyear profit is now under review. “A result like this will come as no surprise given the milk price and drought challenges.

this saw Fonterra’s thenseason forecast price of $7/kgMS applied, a happy outcome for farmers who pitched to supply a total of 25 million kgMS, and who then saw the forecast nosedive to $4.70kgMS. But not all Landcorp milk is supplied to Fonterra. The fall in milk prices has significantly impacted revenue, says Carden. However, the company remains on track for a modest profit. “These first six months have seen us open new dairy units in Taupo and we have achieved our secondhighest lambing percentage in our North Island livestock business. “We’re continuing our

“Flourishing in a highly volatile world means maintaining a diverse portfolio of other species farmed. We plan to refocus our traditional beef, lamb and venison products around particular customers and we’re trialling new higher-value sales

of our products. For example, our partnership with New Zealand Merino to market our entire coarse wool clip gives us a direct relationship with some well-known consumer brands,” Carden says. facebook.com/ruralnews

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“Flourishing in a highly volatile world means maintaining a diverse portfolio of other species farmed. We plan to refocus our traditional beef, lamb and venison products around particular customers and we’re trialling new highervalue sales opportunities in sheep milk, deer leather and manuka honey.” However, we have cushioned the impact of these external factors by anticipating them early. One example is our support of the Fonterra guaranteed milk price scheme and another is our proactive livestock management around the country ahead of the drought.” Fonterra’s offer in June last year to buy 40 million kgMS at a guaranteed price was well under-subscribed;

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RURAL NEWS // FEBRUARY 17, 2015

28 OPINION EDITORIAL

EDNA

Mindset change needed THE SAFER Farms initiative, recently introduced by WorkSafe NZ, is a timely one. Since 2008, 120 people have been killed working on farms in New Zealand: four times more people died on farms last year than in forestry or construction. Figures show that someone is killed on a farm every fortnight; this is a shameful record and it must change. Improving farmer awareness and understanding of risks involved, along with education on how these risks can be minimised and/or managed, is a more effective and better approach to changing these appalling statistics than dishing out heavy-handed fines. While farmers may strongly believe in personal responsibility, rather than having ‘big brother’ telling them what to do, they have an inherent intolerance of bureaucracy and attending to endless compliance documents. Still they need to clean up their collective act. The stats don’t lie. Far too many farmers, farm workers and their families are killed and/or hurt on our country’s farms every year. There is no excuse for the poor safety record these statistics show. Any initiative that saves lives and protects people should be strongly supported. While many farmers may disagree with some recent interpretations of the Health and Safety Act, like the carrying of quad pillion passengers and heavy fines for not wearing helmets, it is clear the ‘carrot’-only approach is not working. The option to implement the ‘stick’ – fines – is a necessary one. Yes, farming can be a dangerous occupation, but farmers and their staff must take all necessary precautions and be aware of the risks involved to mitigate the risk of accidents/and or deaths on farm. Let’s hope more farmers are becoming more aware of the health and safety issues in their workplace. As Peter Jex-Blake, Federated Farmers Gisborne/Wairoa provincial president, said at the Safer Farms launch in his region last week – a change in culture is needed. “It requires a change in mind-set; which will take a while, but with the right approach, we will get there.” Work Safe Minister Michael Woodhouse is right when he says, “The number of deaths and injuries on farms won’t be reduced by the Government sending out more inspectors. Only farmers can directly influence this toll.” Hopefully Safer Farms will help them do this by finding health and safety solutions that work.

RURAL NEWS

“Can you believe it!? – Your secret Valentine bought you a super new wide screen TV just in time for the world cup!”

THE HOUND No sour grapes THE HOUND’S comment last issue re the wine industry whining over the moves by MPI to impose an extra $2.9 million a year in fees to cover biosecurity cost for the sector raised a few hackles. Your mate’s been told the industry already pays $200 million a year in excise taxes – unique to the wine industry – so any extra charges for biosecurity should be taken from this, rather than more taxes being imposed on winegrowers. Your old mate is pretty sure the people at MPI will not buy this argument, but reckons the industry is well within its rights to run the idea up the flagpole.

Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz

Arse kicking YOUR CANINE crusader is stunned to hear that the failure by some shiny-bum at Gumboot Castle (Fonterra HQ) to complete the proper paperwork has caused the dairy giant to lose its multi-million-dollar cheese market in the United States (the said shiny-bum) “forgot” to renew import licences. Apparently, the blunder means Fonterra’s 2015 US cheese quota is likely to be given to competing companies from other countries. The Hound suggests the big cheeses at Fonterra administer some serious arse kicking.

Greenwash warning THIS OLD mutt hears Greenpeace is advertising to outsource its activism in this part of the world to people in Hong Kong. According to job ads, the lobby group wants to base its Asia Pacific (including NZ) activities in Hong Kong… “Using content produced at national offices to amplify the reach and impact of Greenpeace’s campaigns by selectively distributing stories to international audiences’. The Hound suggests NZ audiences are soon to be ‘greenwashed’ by overseasbased activists.

Media beat-up

What a Dick

YOUR OLD mate’s favourite idiot MP – NZ First’s A LACK of real news in Richard ‘the Tosser’ Prosser the post-Christmas lull – has been at it again. He saw ‘the big dry’ domirecently issued a media nate some regions’ local release bemoaning the lack media and feature more than usual on national news of young people studying programmes. Some reckon agriculture and promising to ‘start a campaign’ this over-the-top, early coverage is behind the reti- to encourage students to study agricultural discicence of farming leaders plines at university. The to ring alarm bells and call for a drought. According to Hound suggests it’s a pity the New Zealand First ag the Hound’s source, there spokesman didn’t do a little are more sinister motives more research – like reading at play: that the old timers the front page of Rural News want nature to teach the on Feb 3; Prosser would newcomers a lesson and have discovered there has – like vultures – they’re been a 20% increase in circling to buy the stock student numbers at both and farms forced onto Massey and Lincoln this the market. Your canine crusader condemns such a year enrolling in agricultural degree courses. dog-eat-dog attitude.

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ABC audited circulation 81,188 as at 30.06.2014 Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.

RURAL NEWS // FEBRUARY 17, 2015

OPINION 29

What next: on-farm child ban? THIRTY-SEVEN PEOPLE were killed at work in the last financial year; ten were in the agricultural industry. The farm deaths tended to involve the ‘mature’ (possibly slightly beyond the prime of life) and the inexperienced, but whatever the age, ten people dying because of farm accidents is more than anybody wants. The problem: farms are complex environments and people make mistakes. They make them on roads as well, of course, and on beaches. But on roads and beaches people are considered to be making personal choices, however stupid those choices might be. On farm, the choices are made for work reasons, which mean WorksafeNZ is involved. It also means employers are liable for accidents. Now the liability is being extended to farm workers’ families – their partners, children and friends. The new workplace health and safety law, due to be brought in mid-year, is already causing discussion about how employers and parents will manage and whether children should be confined to ‘house and garden’. The irony is that in towns, where children are confined, research is being done to see how self-management can be increased by removing restrictions. PLAY was the brainchild of Professor Grant Schofield at Auckland University of Technology. It involved eight primary schools and when the project ended the story

aren’t around that aspect vanishes and a considerable component of the lifestyle has gone. Already concerns are being raised about the ability to attract people into the industry. If children are banned from farms, the problems will increase. Secondly, yet more went viral on the internet and featured in publications including The Economist. Schofield says the modern day has created a paradox: “in the pursuit of safety and well-being for our beloved children, we make them less safe in the long run. The right time to learn how to manage risk and manage emotions is when you are eight years old, up a tree or in a fight with the kid next door, rather than when you are in a Subaru WRC at 18 with the cops after you and a few beers on board.” Investigations are also underway into why farmers’ children have fewer allergies than urban children. Massey University is examining the effects of drinking raw milk; in America the University of Wisconsin has taken a broader approach and is looking at the microorganisms involved with farm life – the soil and animals, for instance. Overall the consensus appears to be that farm children are healthier than their urban counterparts. Banning children from farms will have considerable consequences. The first one is the effect on current employees. Part of the pleasure and satisfaction in farming is having family around. If the children

people will grow up not having farming in their blood, and not wanting to get involved as a career. Jeanette Mulvey, editor for BusinessNewsDaily suggests, “There’s a reason farmers’ children became farmers, and butchers’ children became butchers. They

learned from their parents by working with them, talking to them and learning a vocation over many years.” Thirdly, even more people may develop allergies and may struggle to learn to self-manage – not understanding risks and limits.

Of course, the bottom line is that children die on farms. In particular, the Child and Youth Mortality Review Committee reported last year that 33 children were killed in off-road vehicle accidents between 2002 and 2012: 15 died on motorcycles and 12 on quads. Two thirds of

the children were operating the vehicles alone. Children also die in swimming pools, rivers, beaches, on roads and on driveways. Sad, but a consequence of living. Guidance is required everywhere, not just on farm. But total restriction is not the answer.

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RURAL NEWS // FEBRUARY 17, 2015

30 OPINION

Farm values will hold A DROP in the primary produce commodity price index will scarcely affect land prices, says the real estate industry. Bayleys national manager Simon Anderson says farming’s lower revenues will little influence how farmers estimate future revenues. Farmers use revenue data, costs of production and debt servicing to figure what they should spend to buy a new property. “Farmers, and more importantly their banks, are taking a long-term view of commodity prices. Longterm the outlook is strong for sheep, beef, and diary prices,” Anderson says. “So while Fonterra is budgeting for a farmgate milk price of $4.70/ kgMS for the next season, the banks take a longer term view – more around $6.30. “There’s nothing new about the cycles of the rural market, but banks and farmers take a more flat-line approach to their revenue forecasts, working instead on long-term rolling averages rather

than historical high and low positions which can fluctuate markedly in the short term.” Bayleys notes more corporate buying rural property: high-equity farmers are looking to develop economies of scale by buying extra properties close to those they now own. “Bigger… farmers can take advantage of fertiliser input, pasture management, seed or crop planting, feed production and staff

management over nearby properties. “While commodity prices are the same for all… economies of scale benefits vary depending on a farmer’s experience, equity, location and business plan.”

HOUND WRONG ON WINE COMMENT RE THE Hound’s comment ‘Whining winos’ in the Feb 3 edition: my wife and I are wine growers. In our business we deal with things beyond our control: weather, legislation, exchange rates – we are apparently brave souls. As farmers we all need to be acutely interested in our biosecurity and we have few objections to paying our fair share. The wine industry, a showcase for what this country can obtain in a world looking for clean, green premium products, has for many years been lumbered with a unique tax called ‘excise’.

We have no beef 22 OPINION EDITORIAL about paying our Credibility the key share for biosecurity, but for the Government to ask for another $2.9 million, on top of THE HOUND the $200 million already taken annually in excise (read ‘taxes uniquely RURALNEWS from the wine industry’) seems blatantly unfair. So the Hound’s comment that “the $1.3 Take the funds for biosbillion industry should ecurity, as it pertains to suck it up and pay the the wine industry, out of small increase” seems the pool already contrib‘fired from the hip’ and uted. ignorant, and overlooks Doug Bell that we already pay lots. Gisborne RURAL NEWS // FEBRUARY 3, 2015

EDNA

FEDERATED FARMERS has undergone a major transition during the past four-five years.

Gone are the days when the Feds would fire out deliberately antagonistic statements chastising government or industry critics for some perceived action – or lack of it. The days of being a screaming skull and demanding attention are thankfully behind it. For Federated Farmers to be credible, with its members and the wider community, it has to be credible. Like it or not, the reality is that Feds is the only organisation that can nationally represent the farmer’s view. National president William Rolleston and chief executive Graham Smith are fairly new in their roles, but both have a similar attitude to what the organisation should be saying and how it should say it. They are firm believers in a ‘quality not quantity’ message. The move by the organisation’s former chief spin doctor to work for Winston Peters, late last year, has also been timely for Feds. The bombastic style of his messaging is far better suited to an outdated, antiquated, one-trick pony, political dinosaur like NZ First than a modern-day farmer lobby. However, Fed Farmers remains an advocacy lobby for farmers and so at times it will have to be unabashedly pro-farmer and even controversial. But this approach soon loses impact and effect when it is the lobby’s only modus operandi. A key challenge for the farmer lobby is how to the repair the reputation of the agricultural sector with the general populace. Too often farmers are portrayed in the mainstream media as moaners, environmental vandals, money hungry bludgers, uneducated oafs and/or any combination of these descriptors. These kinds of narratives have gone unchallenged for too long – meaning the relationship and understanding between town and country is no longer a small gap but a yawning divide. Federated Farmers has an important role in helping close this divide. It has a far better chance of winning the hearts and minds of detractors when it is acting with credibility and facts. It is a big job and will take a huge effort, but the work needs to start now!

“I see you’ve been fishing again!”

Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz

What slump?

YOUR OLD mate reckons there is no fool like a farmer when buying land. This was confirmed late last year when a Morrinsville dairy farm sale broke through the $100,000/ ha barrier. Despite the $4.70 forecast payout, buyers were in ‘boots and all’, according to real estate agent Bayleys’ Mark Dawe. “We are seeing ‘old money’ buying these farms with wellestablished families looking at growing their Waikato presence,” the land shark was quoted as saying. The Hound trembles to think of what land prices will do when the dairy payout starts rising again.

Stern stuff

A MATE from the south was talking about “the dry” the other day and how they’ve had less than half their normal rainfall for the past six months. In anyone else’s books it would be a drought, but down in the mainland apparently they’re avoiding that dreaded ‘D-word’ for fear of skittling stock prices and inflating feed values. Besides, having been through worse in the 1980s, most of the region’s farmers are made of stern stuff, and quite a few now have some irrigation. The Hound reckons it’s only when that starts to run out that the proverbial will truly hit the fan.

PRODUCTION: Dave Ferguson ........................Ph 09 913 9633 Becky Williams ........................Ph 09 913 9634

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Whining winos STFU!

THE HOUND reckons the wine industry is being somewhat disingenuous in opposing moves by MPI to recover $2.9 million a year from the sector to meet the costs of its wine regulatory programme. MPI’s proposal for wine is part of a wider review of the fees MPI charges to primary industries for its services and activities as part of New Zealand’s biosecurity and food safety systems. Your old mate suggests the $1.3 billion sector should suck it up and pay the small increase; they would be first to whinge if an imported biosecurity scare shut down their exports.

YOUR OLD mate is not the first political observer to note that since former Feds spin doctor David Broome signed up as Winston First’s taxpayerfunded mouthpiece late last year, the number of media releases put out by NZ First MPs has gone through the roof. Unfortunately – rather like when Broome was running the Feds PR – it seems the missives from Winston’s lot are all quantity with bugger-all quality. The Hound reckons Winston should take Broome aside and tell him Abe Lincoln’s adage: ‘It’s better to remain silent and be thought a fool than to speak out and remove all doubt’.

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www.claasharvestcentre.com

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FEDERATED FATTIES

Weak commodity prices have little impact on rural property valuations say Bayleys’ national country manager, Simon Anderson.

I NOTED a media comment in December by Fed Farmers’ new chief executive, saying though the organisation was in a good cash position it had decided to

increase its membership fee by $30 a year. This takes our annual fee to over $550. I’ve informed them we would not renew our membership.

In view of the difficult time we are having, I cannot believe their arrogance. My time as a member is over. Doug Torr Waitakaruru

Right Machine.

CLAAS Harvest Centre

Ignore her

IT APPEARS that a treehugging, soap-dodging

columnist – whose scribblings appear in the Australian-owned Fairfax dailies in Manawatu and Taranaki – has gone running to police after another of her deliberately puerile, ill-informed and anti-farming rants was recently published. Hound’s advice to those who may be upset by what this supposed columnist has to say should just ignore it – as her opinions are about as sound and informed on farming as ISIS extremists are in practising tolerance, acceptance and diversity.

RURAL NEWS // FEBRUARY 17, 2015

OPINION 31

2014’s hangover could be 2015’s gain CHRIS LEWIS

A NEW year and a slight hangover from 2014. This year starts off with a legacy of grunt work by the primary industries and stakeholders; the results I hope will begin to be realised this year. We are in our sixth year of the Land and Water Forum and 2014 saw the pinnacle of water reform. The forum is a result of the government reform by developing a shared vision and a common way forward among all those with an interest in water. This is done through a stakeholder-led collaborative process, which is modelled off in the regions.

Ultimately it’s about using water responsibly and efficiently. Farmers have the best chance of success here if we work together. I am confident by the end of 2015 we will be seeing some real progress on lessening the impact farming has on our waterways. The health and safety hangover will be weighing heavily on many farmers’ minds this January. Unlike the slow burn of resolving the water issues, WorkSafe came in hot and heavy in 2014 and has left heads pounding. Unfortunately here, the collaborative process has yet to take off, but sometimes you need to let people

throw their weight around before they’re ready to sit at the table and sort it out. Consultation can come at the beginning or the end, but at some point we need to talk to each other and take a better approach than the heavy handed and disjointed one we have now. Farmers are rightly concerned about how much the local and national government is choosing to solve problems with more rules. It’s a Band-Aid rather than a long term fix. Health and safety is no doubt going to be the kicker for 2015, but the Resource Management Act is not far behind. Last year’s sentencing

of Hold the Gold Ltd and it’s director Bas Nelis had not just Waikato farmers in an uproar but the vast majority of the community, with echoed sentiments from throughout the country. An example of the absurdity of parts of the RMA that allow environmental stewards, trying to do the right thing, to get tangled up in red tape and punished for their trouble. A 2014 Organisation for Economic Co-operation and Development (OECD) report highlighted real problems in our system of environmental regulation, pointing out that high environmental standards don’t have to

mean high administrative costs. Thankfully Nick Smith announced there is to be a Resource Management Reform Bill which will be reported back by local government and environment select committee this June. It’s about time we had a good cleanse or detox if you will. Finally, 2015 will see some pretty relieved farmers who are set to be compensated by banks for their investment in swaps under misleading information. An important lesson to learn for 2015, you cannot always trust the integrity of your banker but you can bank trust in the relationship.

Chris Lewis

Knowing if the relationship has long term value for both parties can help you take better educated risks than going it alone. So take what you want

from 2014, but know we’ve laid the groundwork to make 2015 count. • Chris Lewis is Federated Farmers Waikato provincial president

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RURAL NEWS // FEBRUARY 17, 2015

32 MANAGEMENT

Dealing with drought While there’s been the odd dry spell, Canterbury and Otago’s farmers haven’t seen a serious drought for more than a decade and for some, this will be their first. Andrew Swallow talks to a long-time consultant in the region on how best to get through. WHATEVER IT takes, don’t disrupt your capital stock to cope with the drought. That’s the headline message from a seasoned Canterbury consultant who’s seen the region go through severely dry seasons in over 40 years in the industry. “As soon as you disrupt your capital stock, when the rain and recovery comes you will be hit

somewhere and you’re going to compromise your cashflow for more than just the drought year,” stresses Peter Clarke, Geraldine. Feeding capital stock, by buying feed, or sending them away to grazing, will not be cheap in a drought, he acknowledges, but it will be less than the cost to the business of selling capital stock in a droughtdepressed market and

having to replace them at high prices when the drought passes. It’s also highly likely income will be foregone in the interim. If sheep and beef farmers have taken on dairy grazers, they should consider them as capital stock too, he says. “You have a contract and you won’t be getting 18c/kgDM out of any other class of stock at the

moment. Put the lambs off to keep the heifers on.” So, having bitten the bullet to keep the capital stock – replacement heifers, hoggets and twotooths included – what do you feed them? Clarke says that comes down to what’s the cheapest feed available in cents per megajoule of ME that will meet the needs of the stock class. In most years that’s homegrown

Peter Clarke

KEY POINTS feed, usually pasture or perhaps a forage crop or two during summer and autumn, moving onto feed crops in winter. How much of those winter feed crops will be available this year remains to be seen. Where moisture was conserved by spraying off, fallowing and spraying again before sowing, they established well and will recover if rain comes soon. Where corners were cut and/or moisture lost in cultivation, there are “disasters”. “In some years they will get away with it but this year they’ve taken a hiding.” With conserved feed typically costing at least three times crop fed in situ, even in a normal year,

❱❱ Keep capital stock and replacements. ❱❱ Buy feed or send away as necessary. ❱❱ Progressively quit other stock classes. ❱❱ Know your c/kg DM return for each stock class. ❱❱ Revisit farm policies for crop establishment and feed reserves. replacing that shortfall from winter crops won’t be cheap. Regardless of winter crops, Clarke says as a rule of thumb dryland sheep and beef farms in the South Canterbury region should carry a reserve of fine chop pit or stack silage adequate to feed all capital stock for 100 days in summer and/or autumn should it get dry. While baleage is a popular option for its convenience, and may be the only option for those buying feed in now, it’s not the best way to build

those reserves. “Baleage should be illegal. It’s far too costly.” Also, when large amounts of supplement have to be fed, such as in a drought or snow, feeding baleage is much more time consuming than filling a feeder wagon with fine chop silage. Where trading or finishing stock are still onfarm, Clarke advises planning destocking progressively to minimise income loss. “You should know the income per kg of drymatTO PAGE 33

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MANAGEMENT 33 NOT A ‘SUPER’ DROUGHT YET FROM PAGE 32

CLARKE SAYS the current drought is “very bad” but hasn’t been going long enough yet to be classed a ‘super drought’ such as 1988 or 1969. “For most people it’s only got really serious since late November because there was a lot of moisture in the soil coming out of winter, though on light ground it would have been felt earlier.” In contrast, in the infamous 1969 drought, a dry summer and autumn was followed by a winter without enough rain to replenish soil reserves so there was little or no spring flush, he points out. “That was the first year I was farming. We had seven inches [of rain] in ten months. It was fearsome.” The current drought is widespread and includes many normally rain-reliable areas along the foothills. S ome are “still green but not growing much.” Others are already brown and won’t recover for weeks even after rain arrives.

IRD is watching! PETER BURKE peterb@ruralnews.co.nz

INLAND REVENUE says it’s monitoring the drought and looking at the financial situation of farmers, with a view to seeing how they can best help them through the dry. A spokesman told Rural News that even though a drought hasn’t been officially declared, farmers and other affected people can approach them at any stage for the range of relief options. This includes income equalisation deposits, for which discretions are available, and assistance with the payment of tax when there is hardship. Income equalisation sees farmers allowed to apply some income from a good year to that of bad year. This preserves cash that can be applied for drought recovery and helps average out tax rates for the year. “We realise farmers’ incomes can be ‘lumpy’ and this scheme is recognition of this fact. The discretions that can apply to the income equalisation rules can be useful to some farmers

who are seriously affected. “The main message though, is that affected farmers should talk to their accountants in the first instance about the range of options that might

help them.” The spokesperson says “MPI is currently briefing Inland Revenue on a regular basis so that it can be prepared for any declaration if it comes.”

Inland Revenue says the options available to farmers are the same whether or not a drought is declared. But if a medium-size adverse event is declared it allows Inland Revenue to simplify procedures. “For example, instead of getting evidence from the taxpayer as to how they might be affected, we may just accept the taxpayer’s actual declaration. In effect we are allowed to aggregate a whole lot of taxpayers and say they are all affected by the drought. “For instance, if a drought was declared in South Canterbury and a farmer in that area was severely affected, Inland Revenue would take their word and action their requests.” Inland Revenue says the declaration of a drought makes the process for farmers easier, but it doesn’t change the nature of assistance available. The declaration also has the effect of making Inland Revenue staff more aware of a problem in certain areas and they are likely to react more quickly and with greater sympathy.

Dealing with drought FROM PAGE 32

ter fed to each stock class and destock the lowest earning stock first. If you don’t know the income per kg of drymatter by stock class, ask a consultant to work it out for you.” In practice in January that meant quitting store cattle ahead of lambs as prices for the former remained relatively firm while lambs, stores in particular, crashed.

With dairy grazers, heifer calves need to be on good quality feed but R1 heifers, if they were ahead of target at Christmas, “can become cows”, grazing rougher pasture and scrub if need be. Supplementing with PKE is also an option. For the calves, summer feed crops should have been planted to provide quality feed and reduce reliance on drought prone pasture. Clarke says he stresses

to all his sheep and beef clients with dairy grazers the importance of an “ahead of target by Christmas” policy to build flexibility in summer, and in a year like this, it really pays. As a difficult stock class to manage they should also never be more than a third of the stock units carried, he believes. “Heifers are a lot like bull beef. They’re risky and in years like this you get your come-uppance

for taking that risk. That’s not a criticism. It’s just the way it is.” Clarke stresses there is no one recipe for dealing with the drought and plans have to be made to match the farm, stock and feed availability. The bottom line is droughts always reduce income and increase cost and how big that impact will be has often been determined by policy and choices made long before the dry set in.

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34 MANAGEMENT

North’s fragmented horticulture needs an action plan – report PAM TIPA pamelat@ruralnews.co.nz

HORTICULTURISTS IN Northland need to work on a strategic action plan with national bodies such as Horticulture NZ and the Avocado Industry Council, says the newly published Northland Regional Growth Study. The action plan should identify options for such sectors as avocados, kiwifruit and citrus, says the report, released this month by the Economic Development Minister Stephen Joyce and Primary Industries Minister Nathan Guy. The industry must look at how to achieve scale, for example, via collaborative manage-

ment, to increase valueadd through R&D in the region, and to develop future leaders and workers. Joyce described the report, which also looked at tourism, forestry, dairy and aquaculture, as the most comprehensive on Northland’s economy in many years. Guy says the study highlights the need for diversification in the Northland primary sector to create higher incomes for households and higher-value exports for New Zealand. This includes sustainably building scale in dairy, avocado and citrus production. The report says Northland has a unique horticulture industry with

“The region’s Horticultural Forum represents the industry and provides a vehicle for industry players to join forces to develop a strategic action plan. “The plan could identify how Northland’s horticulture industry will position itself to double in value, e.g. could it become the food bowl for Auckland?” The plan should also look at how to develop future leaders, increase investment in and commercialise science and technology, focus export marketing, differentiate products, and exceed sustainability thresholds. The plan should be coordinated by Northland Inc. and the Horticulture

advantages over and differences from the rest of New Zealand. Almost all the nation’s kumara, a third of its avocados, and a quarter of its citrus are grown in the region. Yet GDP and jobs in horticulture have declined over the last 10 years, at about 2% a year, partly because of disease such as Psa and adverse weather. Nursery, flower growing and beekeeping have grown. “Though the sub-sectors within horticulture in the region face several issues and opportunities for growth, the industry as a whole struggles to address them because it is fragmented and has a large number of small players.

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posed coalition is the production of medical grade honey, the report says. Medical grade can sell for $50/kg vs $8-$15 per kg for non-medical grade honey. About 700 tonnes of honey in the region is reckoned medical grade, though this is only produced two out of five years. The region could produce 2000 tonnes of medical/cosmetic grade manuka honey, needing about 60,000 hives with skilled beekeepers producing the goods four out of every five years. Economic Development Minister Steven Joyce.

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Forum. “The plan development process could also involve the Ministry for Primary Industries and national bodies such as Horticulture New Zealand and the Avocado Industry Council.” The report says manuka honey is identified as one of three horticulture areas with growth potential. Honey exports have grown 30% annually for 10 years; higher prices for ‘active’ manuka honey have boosted the value of exports. “Northland produces some of the highest medical grade manuka honey in New Zealand. However, the industry [has] small players with poor beekeeping practices. The opportunity is for Maori/iwi/hapu and the industry to work together to increase production of highly active (med-

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GOVERNMENT INITIATIVES to grow horticulture in Northland: ■■ Go Global – a five year scheme supported by the PGP to increase productivity and capability in the avocado industry. ■■ Research to develop new avocado root stock, to allow avocado growing in areas of lesser soil quality. ■■ MBIE funding of research into preserving avocados during transport, to expand the number of poten-

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tial markets. Manuka Research Project – a seven year scheme supported by the PGP to increase manuka honey exports to at least $1 billion. Sustainable Farming Fund support for a project to lift productivity and profitability of collectively owned Māori kiwifruit orchards R&D scheme involving New Zealand and international researchers to develop strategies to combat Psa.

RURAL NEWS // FEBRUARY 17, 2015

14 years’ wait for water nearly over ANDREW SWALLOW

AS MOST of South Canterbury’s farmers grapple with drought, about two dozen in the hinterland of Waimate will be hoping this is their last. They’ve bought into the Waihoa Downs Irrigation project, a subsidiary of Morven Glenavy Irrigation (MGI) which will bring reliable Waitaki water to just under 3300ha of their properties. “In my situation it will give me an engine room,” sheep and beef farmer Henry Dyer told Rural News at the official ceremony to mark the start of construction. “I’m doing 50ha at this stage but there’s the potential to do 120ha.” Scheme instigators, Robin Murphy of MGI and John Kirk, deputy chairman of Waihoa Downs, explained how it had taken fourteen years for the concept of lifting Waitaki water into the Waihoa catchment to reach construction. “There was a four or five year hiatus in the middle due to the Waitaki [allocation] Plan but it’s gained real momentum in the last two or three years,” said Murphy. “The turning point was when we went away from

trying to do 5500ha and went with the hardcore of farmers who fully supported it.” That decision cut the design specifications and cost for stage one to $30m which farmers have funded with $1500/ha shares. An annual charge, anticipated to be about $800/ha in a typical year, will be due hereafter, the exact figure depending on how much water is required each year. “In a dry year it will cost more because we’ll use more power.” The power is to pump water up 6.5km of 900mm pipe to a pond at 217m above sea-level on the edge of the Waihao valley, from which it will flow down a backbone and rib network of pipes to the farms. “It will be under pressure but not sufficient pressure to run the irrigation systems on most of the farms.” The build programme is 204 days using fibreglass pipes from Saudi Arabia dug into trenches up to 4m deep. Allowing for no-work days due to wet ground over winter it’s hoped water will be available on farm by spring 2016. “Some of the ground

is quite steep and this land can get very greasy in the wet,” project manager Grant Mehrtens of Rooney Earthmoving explained. Kirk says they’re already taking “expres-

sions of interest” in stage two of the scheme, which could take the area to 6600ha, but no decision on whether to progress that will be taken until stage one is complete and operating.

MANAGEMENT 35

Henry Dyer says watering 50ha of his 519ha property will give it “an engine room” for finishing stock and conserving feed.

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planted. In 1995 a decision was made to amalgamate the business with the neighbouring Waerenga Incorporation under a company structure named Wae-Kiwi, and to convert the business of the farm to shared interests in a full scale dairy farm operation. Waerenga Pukahukiwi’s business adviser Lee Matheson says it has been a long hard road to success for the farm. Matheson says Waerenga Pukahukiwi had a good balance sheet and poor cash flow. Being owned by 1100 people, it was difficult to raise capital for development; the decision to convert to dairying was “pretty ambitious”. “But the owners took a long term view and the conversion has paid off; it has taken us 18 years to get here.” In the early days of dairying the owners employed a sharemilker as they had no capacity to buy cows. This meant less income for shareholders because of regular capital spending on new fencing, lifting soil fertility and housing. “The profits were not high for a long time,” he says. In 2007 the owners decided to buy out the sharemilker, exerting greater control over farming operations. He says 12 years of consolidation has paid off for the owners, who are happy to balance making profit with keeping the lakes clean.

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RURAL NEWS // FEBRUARY 17, 2015

36 MANAGEMENT

Profitability, water quality hand-in-hand sudeshk@ruralnews.co.nz

PRODUCING THE same quantity of milksolids from half the number of cows would be a winning formula for any farmer. But for the 1100 owners of the Waerenga Pukahukiwi Ltd farm in Bay of Plenty, the need is to strike the right balance between profitability and protecting water quality. Waerenga Pukahukiwi is a 1548ha (833ha eff) farm, owned by Ngati Pikiao, located 17km north-east of Rotorua; it borders on the northeastern and northern shores of Lakes Rotorua and Rotoiti respectively.

Nitrate leaching is a hot topic around the lakes and as owners Waerenga Pukahukiwi are leading by example. Last week about 60 economists and academics, in Rotorua for the Australian Agricultural and Resource Economics Society Conference, visited the farm to see firsthand how the owners are balancing farming and protecting water quality. The farm is modern and has a 70-bail rotary machine milking at least 1000 cows. Year-round they are fed 60% supplements – barley and maize – grown onfarm; little grass is grown onfarm due to climatic conditions.

The farm has a manager and six full-time staff. Production this season is expected to top 370,000kgMS, higher than the 2001-02 season, when the farm had nearly 2000 cows. Annual nitrate losses in 2001-02 topped 43.7kg/ha; this season it is calculated at 31.2/kg/ha. Waerenga Pukahukiwi chairman Clinton Hemana says nitrate leaching is kept low by onfarm management but the farm is “still in catchup mode”. “On one side our farming is inefficient and on the other side we are looking after the lakes,” he told visitors at the farm.

Striking the balance between profitability and protecting water quality is the challenge at Warenga Pukahukiwi Farms.

“We all want the lakes to get better.” He says with about 1900 cows 15 years ago, the farm had a larger nitrate leaching footprint. But with greater efficiency in nitrogen use and lower stocking rate, nitrate leaching has reduced. “Nitrate leaching is driven by urine patches and with

fewer cows, there is less leaching.” To lift production per cow, Waerenga Pukahukiwi focuses on mating management: 78% of the herd achieve six-week incalf rate and body condition score on June 1 is a minimum of 4.8. Nitrogen use is largely limited to the milking

platform and cropped areas; it is applied in early spring to boost pasture intakes, in late spring to lift pasture quality and in autumn to lift pasture cover going into winter. Soil N tests are done before all cropping to optimise inputs. A feed pad is used for all supplementary feeding

to milking cows. Historically, from 19551995, Pukahukiwi was a sheep and beef farm carrying 80% sheep and 20% cattle for most of this period, and changing to about 60% sheep and 40% cattle in the early 1990s. Several small blocks of pinus radiata were also TO PAGE 35

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MANAGEMENT 37 GROWERS TRY NEW GRAIN TRIALS OF the grain quinoa (‘keenwa’) are expanding in Australia as imports from South America, and prices, soar. “Australian quinoa imports increased 137% in 201314 year-on-year as consumers discovered this previously little known product,” says National Australia Bank’s general manager agribusiness Khan Horne. Prices hit $8/kg in early 2014, up from $2.50/kg two years before. Several growers in Western Australia and Tasmania, and researchers at Western Australia’s Department of Agriculture and Food, have harvested crops and “a fledgling market for the local product seems to be developing”. Much of quinoa’s appeal is its gluten-free status, but that presents cross-contamination and certification challenges if headers and/or storage facilities are also used for wheat. Weed control, poor tolerance of waterlogging, highly variable yield, and a lack of domestic transport and marketing arrangements are other pitfalls, though trials are trying to address these. “While the strong price growth may tempt producers to switch to quinoa, there are risks for growers to consider,” stresses Horne. The UN Food and Agriculture Organisation (FAO) made 2013 the International Year of Quinoa. Its website puts quinoa’s yield potential at 11t/ha, with 6t/ha considered good and 0.85-3.5t/ha average. It says it will grow in a wide range of soil types and climates, withstanding temperatures from 8oC to 38oC.

Sheep man gets top role WELL-KNOWN SHEEP specialist Professor Paul Kenyon is the new head of Massey University’s Institute of Veterinary, Animal, and Biomedical Sciences. The institute includes New Zealand’s only veterinary teaching hospital and its leading native wildlife health centre, Wildbase.

Kenyon has led or co-led at least 100 sheep research studies in the past decade, resulting in 330 scientific publications aimed at improving on-farm productivity and profitability. College of Sciences pro vice-chancellor Professor Robert Anderson says Kenyon’s proven

Paul Kenyon

teaching and management skills and his strong

research links in New Zealand, Australia, Asia and South America made him an excellent candidate for the role. Professor Kenyon says there are opportunities for the institute to grow in undergraduate and postgraduate teaching and in research nationally and internationally. He aims

to help identify those opportunities and develop strategies to exploit them. “I’m honoured to be the head of an institute that is nationally and internationally recognised for its teaching and research excellence. And I’m excited by the challenges this position brings.”

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WOOL GROWERS wanting to take advantage of premium wool prices need to watch out for vegetable matter in the dry conditions, says NZ Wool Services International’s Purelana manager, Malcolm Ching. “Normally around drought time with animals pushing in for feed, they push a bit harder under bushes and under trees and you also get a weed and seed burst,” Ching told Rural News. “We get a higher incidence of vegetable matter.” Ching, who is responsible for farmer liaison, recommends more preparation and trying to remove during shearing time the wool that is contaminated with seed. “It has a high priority from here on because if a lot of it comes onto the market like that then you will see substantial discounts for wool that has seed and vegetable matter in it compared with wool that is seed free.” Farmers will need to weigh up whether they hold stock and feed and shear them, or whether they send them to the works without shearing. “In a drought, when you shear an animal it wants to eat, so if you shear them and don’t have the feed you’ll stress your animals. So it’s a fine balance for some farmers whether they hold them, shear them and have enough feed, or don’t have enough feed, don’t shear they and send them to the works with the wool on.” He says this is likely to cause a shift in the percentage of shorn wool against slight wool on the market. “There are quite a few markets in the world that have no problem having slight wool in their products. It just limits the amount of wool available for those that can’t take it, who want only pure shorn wool.” He says there will be pockets of farmers having to decide about stock but the drought is not national. “It will have an impact but it’s not going to be a massive impact so that little shift we have there has more positives for the wool price than negatives.”

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38 MANAGEMENT

Maintain trees near power lines PAM TIPA pamelat@ruralnews.co.nz

THE LARGE grass fire near Christchurch early this month highlights the need to prune or fell trees likely to touch overhead

lines in high winds, says Orion chief executive Rob Jamieson. “We are continually urging landowners to maintain trees near power lines to avoid power outages,” he says. “That mes-

sage is doubly important in these tinder dry conditions when tree damage can cause fires.” Jamieson says it’s essential people assume all fallen lines are live and stay well clear. He says the

Canterbury company has done all it can to prevent fires being sparked by electrical equipment. One of these steps means it will take longer to restore power in rural areas, but cuts the risk of fire.

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“Several weeks ago as the region was drying out we changed our operating practices because of the heightened fire risk. For example, normally a piece of equipment called a “recloser” automatically restores power to an overhead line after a momentary power cut. So if a tree branch falls on a line in high winds it may cut power for a second or two. When the branch then falls to the ground the recloser automatically reinstates power to the line. “Automatic reclosers are a great means of restoring power quickly but every time they try to reinstate the power they can create a spark.” Orion has shut down all automatic reclosers on its rural network and will manually check overhead lines to find the cause of power cuts while the fire danger remains high. “Unfortunately this means it will take longer to get the power back on, but we can’t take the risk

of starting a fire in the current conditions.” Selwyn deputy principal rural fire officer Douglas Marshall says “currently the fire risk in Selwyn is very high, and on days with high winds or hot weather, or both, the fire risk becomes extreme”. He says property owners must now consider what they can do to reduce the chance of a fire damaging their home. “It’s important that people don’t light fires,” says Marshall. “Even if we do receive some rain the fire risk will remain very high as vegetation is extremely dry and rain is not a signal that people can light fires.” He says the council will seek to recover fire callout costs from anyone who breaches the fire restrictions. People can also be liable for the cost of fire damage. To date this year nine individuals have been billed for fire callout costs in Selwyn.

DO ALL YOU CAN TO HELP reduce the risk of a fire damaging your property you can take the following steps: ■■ Make preparations so your family is able to leave your property quickly. You can find advice and information on how to prepare a household emergency plan and an emergency kit online at www. getthru.govt.nz ■■ Check you have smoke alarms installed and these are working ■■ Check trees on your property are at least 3m away from power lines. ■■ Rural dwellers should keep a clear space around their houses to act as fire breaks: clear vegetation within 10m of buildings. Keep this area watered and green and remove trees, branches, shrubs and long grass. Do not store wood or other flammable materials inside this area ■■ Check you have a wide entrance to your property or paddocks, at least 4m high and 4m wide to allow fire trucks access ■■ If you have animals or stock consider what preparations you can make for them should a fire threaten ■■ Get to know your neighbours so that anyone who needs help leaving in a fire emergency can receive help, or so that if you need help to evacuate, other people are aware of this and can help

RURAL NEWS // FEBRUARY 17, 2015

ANIMAL HEALTH 39

War on wastage in ewe flocks ANOTHER FLOCK WANTED

RESEARCH INTENDED to reduce ‘wastage’ in commercial ewe flocks has begun at Massey University. The trial involves two commercial ewe flocks – at least 12,000 animals. The aim of the project says Professor Paul Kenyon, head of Massey’s Institute of Veterinary, Animal, and Biomedical Science, is to define characteristics in a ewe that farmers can use to determine which sheep to cull, which need more input to prevent them ‘falling’ out of the flock and which ones to keep. Kenyon says the project should provide risk factors on which farmers can base decisions about which ewes to keep or cull. The most productive ewe is one that stays in the flock for many years and continues to rear lambs. The project is led by the recently appointed sheep and beef health lecturer at Massey, Kate Griffiths, until recently a vet in Taumarunui. Griffiths is doing a doctorate based on this project. It also includes Professor Cord Heuer and Drs Rene Corner and Anne Ridler. Griffiths says little research has been done on this subject recently. And farmers say they’d like to know more about what are, in some cases, unexplained sheep deaths and poor production levels in others.

The trial involves at least 12,000 commerical ewes.

Griffiths says the project started with 12,000 tagged hoggets and their progress was followed by recording data on them at least four times annually for some years. “So wastage is basically culling prematurely – before the end of their productive life span. A lot of people cull based on age, [perhaps] at six years old; but the question is ‘can they be kept for longer or should they be culled earlier, and what sort of factors influence that? There is little information about that. “When I left Taumarunui all the farmers wondered what I was going to do, and when I told them, they thought it would be a fantastic idea.” Griffiths says so far a few criteria have emerged, such as if a hogget is mated under 40kg she has a much lower longevity than one that’s heavier. A low condition score at a young age can have a massive impact on the likelihood of a ewe staying in the flock. “So if they are less than BC 2.0 they have reduced longevity and are more likely to be culled or to

die. It looks as though once a hogget is mated at under 40kg it never picks up condition in its lifetime and it has a lower lifelong performance.” If a hogget is under 40kg it shouldn’t be mated but instead fed so that it gains weight for mating the following season. Research has shown BC 3.5 as the ideal condition score for mating. At that number the animal should perform well in all aspects of reproduction. Notably, the trial is in commercial, not research, flocks. Professor Paul Kenyon says the aim is collect data which can be readily applied by farmers. “In the case of a research flock, there is a danger the animals might be slightly pampered. The same could also possibly be said of a breeding flock. That’s why we’ve deliberately chosen commercial flocks for this project.” Kenyon says the trial is also limited to Romney-based composite breeds. He says it would be impossible to do the research across all breeds. “Interestingly, we did a farmer survey recently

MASSEY IS looking at incorporating another flock into the trial, ideally near Massey University. This will enable vet Kate Griffiths to use her skills to determine the cause of death in some sheep. “That means I can do post mortems on animals dying; one problem we have is some sheep are just ‘missing’. These are not being identified as definitely dead

and it would be nice to know what they’re dying of.” Kenyon says this research is timely given the way the country’s ewe flock has changed over 20 years. “Twenty years ago singletons were ok and we weren’t breeding hoggets. Now we’re putting more pressure on them to be multiplebearing and on many farms they’re being breed as a hogget and we

want all ewe age classes to wean heavier lambs. “So we’re putting more pressure on the ewe and the question is ‘can she handle that?’. It’s a bit like what was happening to the dairy industry. Look at our Friesian cow 20 years ago, she was slightly different from what we have now, and you could argue the same is happening now to the ewe flock.”

WHY MULCHING TOPS TOPPING MAKE MORE OUT OF YOUR MULCHING The project is being led by pHD student and vet Kate Griffiths.

which showed that in New Zealand there are 150 ‘composite breeds’ – which is quite a lot.” He says the research project can deliver financial benefits to farmers because wastage in sheep flocks costs farmers money. This occurs when sheep die and when they suffer poor health. All this means farmers must carry more replacement stock and face greater costs getting their animals well again.

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40 ANIMAL HEALTH Kate Fraser with 8-yearold Ned, fighting fit and roaring to go.

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A MARLBOROUGH vet is urging farmers to treat their dogs as they would any good worker during the mustering season, reports animal remedy firm Zoetis New Zealand. The company has launched an anti-inflammatory drug to treat joint problems and pain in dogs. Stuart Burrough, at the Vet Centre Marlborough, experienced in orthopaedic surgery and hip problems in dogs, has seen working dogs’ back and hip problems get worse during busy times. “Some of these dogs can be in severe pain,” Burrough says. “Often the pressure is on them to keep working if there are no younger dogs coming behind them.” A Massey University study of disease and injury in working dogs on 44 farms in the lower North Island found 17% suffered joint and leg issues including stiffness and arthri-

tis. In semi-retired dogs the problems were 25%. Concerned at seeing many working dogs suffering joint problems and pain, Burrough ran a trial using Zoetis’ new anti-inflammatory Trocoxil tablets. The treatment is given once a month following an initial loading dose; this reduces the risk of forgetting treatment and ensures continuous pain relief. Pet dogs had responded well to the drug so Burrough and colleagues “wanted to see how working dogs might respond… and whether it could lengthen their working life, even if by just a couple of years.” Two local working dogs were enrolled. Tyntesfield Station’s Katie Fraser says her 8-year-old Ned had been slowing during the days, not wanting to jump up onto the motor bike and responding more slowly to com-

mands. He had a history of back pain, with bony projections on his lower spine and mild lesions developing higher up. The treatment brought him results within days, Zoetis says. Fraser noticed him moving more freely, and a month after the initial dose he “had more life in him and was keen to work again”. “He is keen again to be working, and while you don’t want to push a dog that’s a bit older, he’s happier to be out there doing what he does. “Before treatment we scored Ned on a lameness scale of 4/5, and afterwards at 1, and the same for his stiffness score,” Burrough added. Ned recently won the Marlborough Tux Maiden yarding competition. The treatment, costing $50 per month, brought no side effects, Zoetis says.

Equine industry signs up THE NEW Zealand Equine Health Association signed up to a Government Industry Agreement (GIA) for Biosecurity Readiness and Response at the Karaka yearling sales last month. Primary Industries Minister Nathan Guy has welcomed a fourth primary industry to join the GIA partnership. “This means the horse racing, recreational and breeding industry and the Ministry for Primary Indus-

tries can work together to manage and respond to the most important biosecurity risks,” Guy said. “The equine industry is an important primary industry exporter with a strong international reputation. It supports almost 17,000 full-time jobs and contributes $1.6 billion to the New Zealand economy from domestic and export activity.” Guy added that while New Zealand is fortunate that our horse population is free of equine influenza

– probably the industry’s most serious disease threat – we must be vigilant to maintain that status. “I’m pleased the industry has recognised the value that GIA offers by working together to maximise our collective strengths.” New Zealand Pork, Kiwifruit Vine Health and Pipfruit New Zealand signed up to the GIA in 2014. www.gia.org.nz @rural_news facebook.com/ruralnews

RURAL NEWS // FEBRUARY 17, 2015

ANIMAL HEALTH 41

Review improves welfare of live exports ALAN HARMAN

AN AUSTRALIAN scheme to better look after the welfare of exported livestock is working as intended, a federal Government report says. The Department of Agriculture report says since it began in 2011 the Exporter Supply Chain Assurance System (ESCAS) has improved the welfare of exported animals. ESCAS requires exporters to have commercial arrangements with supply chain partners to provide humane treatment and handling of livestock from arrival in the importing country to the point of slaughter. Animal handling and slaughter at the destination must meet World Organisation for Animal Health standards and exporters must have control of all supply chain arrangements for livestock transport, management and slaughter. All livestock has to remain in the supply chain and the exporter must be able to trace or account for all of them. The scheme is in response to public anger about the mistreatment of animals on their arrival in Middle East and Southeast Asian destinations. Agriculture Minister Barnaby Joyce says the live animal export trade is essential to the liveli-

hoods of thousands of Australians and underpins the economies of many communities. “In short it is essential for our nation,” he says. Australia is the world’s second-largest exporter of live sheep and the fifthlargest exporter of live cattle. Joyce says ESCAS began Australia has exported eight million livestock to 18 countries in 1139 consignments with only 22 incidents of animal welfare concern. “In light of this, government and industry are working together to open new export markets and to improve market access for Australian livestock to existing markets.” The emphasis now, he says, is on the continuity of supply, “and this government has worked hard to repair the damage done by the previous (Labour) government to our international reputation as a reliable supplier.” However, Royal Society for the Prevention of Cruelty to Animals chief executive Heather Neil says ESCAS has set a low bar and does not prevent Australian exported animals suffering. The report says government and industry are working with trading partners to enhance animal handling and husbandry skills and improve animal welfare outcomes – training 7000 people to date.

“Industry is helping to upgrade facilities to meet international animal welfare standards and our commitment to this work is ongoing,” Joyce says. In 2013–14 live exports earned A$1.24bn and rep-

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RURAL NEWS // FEBRUARY 17, 2015

42 ANIMAL HEALTH

No drench for heavy ‘uns? ALAN HARMAN

can cause ill-health, diarrhoea and, in severe cases, death. “Depending on the degree of severity of worm burdens, producers may be able to leave those sheep with the higher condition scores in the flock without treatment, which will minimise input costs and save valuable time for farmers,”

NOT TREATING heavier Merino ewes for worms, and dosing lighter ewes, may help avoid drench resistance, Australian research suggests. The new strategies to control scour worms are being developed at Murdoch University, Western Australia. Australian research aims to reduce Postgraduate stusheep drenching. PHOTO: DAFWA dent Meghan Cornelius says sheep with higher body condition scores (about 3.0) – where 1.0 is extremely lean and 5.0 indicates excessive fat – can tolerate moderate worm burdens and are less likely to need drenching than animals in poor condition. This is said to reduce the direct cost of drenching and can prolong the effectiveness of chemical Cornelius says. With drench resistance on the products before resistance develops. The main worms that affect sheep march Australia-wide and the higher in Western Australia are the scour cost of new combination drenches, worms, including brown stomach Cornelius says employing resistance worm (Ostertagia) and black scour management strategies is critical worm (Trichostrongylus), which to the long-term cost of managing

parasites. “Further research is determining how many sheep with higher condition scores we can leave in a mob before there is a negative impact on whole flock productivity,” she says. Scour worm burdens are a major problem for producers in areas with cool wet winters. “The nematodes thrive in temperatures from 16-30° Celsius, and with moisture present the larvae develop in faecal material and then move onto the pasture, ready for sheep to ingest.” Part of her research project includes field experiments with close monitoring of body condition, body weight and worm egg count to compare the production responses between treated and untreated sheep. “Producers can select sires with negative worm egg count ASBVs to further reduce the cost of parasite management,” she says.

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INDEXES AIM AT BREEDING HEALTHY COWS DAIRY FARMERS wanting to produce healthier and more efficient animals can now make this part of their breeding programme, says herd management firm CRV Ambreed. It says its two new breeding indexes, ‘Better Life Health’ and ‘Better Life Efficiency’, will enable farmers to breed specifically for an efficient, easy-to-manage herd that stays healthy as it ages. Both indexes are expressed as percentages so farmers can easily pinpoint the expected health and efficiency value of an individual bull. Peter van Elzakker, global grazing genetics product manager at CRV Ambreed, says the Better Life Health index identifies a bull’s overall contribution to a healthier herd. A higher percentage means the bull’s progeny will have a lower rate of health incidents like mastitis, lameness, difficult births or reproductive problems. “The benefits to farmers are easierto-manage animals, fewer treatments, fewer veterinary bills and, in the end, greater financial gain.” The traits in this index for New Zealand include fertility, calving difficulty,

somatic cell count, residual survival, condition score and TOP-predictors. Overseas genetics incorporate ketosis, udder health, fertility, hoof health, calving ease and calf vitality. For example, Okura Lika Murmur S3J, one of CRV Ambreed’s top bulls, is claimed to excel in calving ease, fertility and cell count, giving him a Better Life Health value of 8%. Bulls pass on half their genes to their progeny, so Murmur’s daughters will be 4% healthier than daughters of a bull that scores 0%, the company says. The Better Life Efficiency index supports sustainable dairy farming by helping to reduce feed costs and increase lifetime production. “Better use of feed, lower feed costs and lower cost per kilo of milk is a good thing, especially when payout is low,” says van Elzakker. The traits included in the Better Life Efficiency index for New Zealand are kilos of milk, fat, protein, live weight, longevity, and fertility. Overseas genetics incorporate the new feed intake breeding value. www.CRV4all.co.nz

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ANIMAL HEALTH 43

Attention to welfare can boost profits DEER FARMERS are being encouraged to look closely at their animal health as part of the ‘Passion2Profit’ initiative. P2P aims to improve deer farm profits by developing new highvalue markets for venison and raising farm performance. It will be partially funded by the Government’s Primary Growth Partnership. “Animal health, feeding and genetics are the three big areas where farmers can influence the profits they make from deer,” says Deer Industry NZ chief executive Dan Coup. “In 11 ‘Advance Parties’ we now have underway, farmers help each other to exploit opportunities in each of these areas. The first of these groups are already achieving good results for the farmers involved. Next will be ‘Clean Bill of Health’, looking at the impact animal health issues can have on deer performance.” P2P advisory group chair Dr Mandy Bell, a Central Otago deer farmer and veterinarian, says deer are low-input animals. “This is one of their great attractions from a farming point of view and no-one wants to change that. But you can’t just

turn them out after say, weaning, forget about them and expect great results. “Every farm is different, but case studies show that health issues can have a big impact on fawning percentages, survival rates and growth rates. With a few well-timed interventions as part of a customised deer health programme, it is possible to greatly improve farm profits. “Before P2P was developed, the industry took a hard look at farm profitability. Deer health was identified as leaving a lot of money on the table.” DINZ and the deer branch of the Veterinary Association have prioritised eight health issues harming deer performance on many farms. Bell says farmers need to realise animal health is not just a cost centre, but instead has potential to increase farm profit. Farmers will be helped to recognise animal health problems on their farms, and what to do about them. Later in the year the focus will shift to animal health planning. “All farmers want to maximise the profitability of their deer. But some of them will have undiagnosed animal

health issues in their herds which, if they were addressed, would boost herd performance and profits. “Farmers typically see vets as an emergency service, called in when an animal health issue has blown up. The ideal is for farmers and vets to work proactively together, with

customised deer health plans developed and reviewed annually. Part of this involves weighing the costs of veterinary advice against improvements in farm profitability.” Advance Parties are co-funded by the Ministry for Primary Industries Sustainable Farming Fund and DINZ.

DEER HEALTH PLANS PAY MANDY BELL cites two recent case studies as examples of deer farmers using customised animal health plans to boost their farms’ bottom line. Farm 1 – The farmer contacted the vet about Johne’s disease. A risk assessment was done Mandy Bell and an animal health plan developed. This involved monitoring and management of all diseases, not just Johne’s, with veterinary input. Each year the plan has been reviewed. After three years, deaths are down from 13% to 2.2%, in-calf percentages are up from 80% to 94.5%, and weaning rates have increased from 70% to 89%. Bell says these performance increases result from a planned approach to animal health, not just the treatment of the one disease. Farm 2 – This well-managed 10,500 SU farm has an annual animal health plan. In the last year it has reduced input costs by increased monitoring. As a result, animal health costs have fallen 25% ($9082). This could not have been achieved without careful monitoring and veterinary involvement, says Bell.

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RURAL NEWS // FEBRUARY 17, 2015

44 MACHINERY & PRODUCTS

Spraying accuracy better by far MARIE SHERRY

NEW SPRAY technology on Case IH’s Patriot selfpropelled sprayers is said to be unprecedented in application control and accuracy in most conditions. The Case IH AIM Command Pro spray system has individual nozzle control and turn compensation, which means accurate rates, precision placement, consistent droplet size and can cover more ground in “narrow application windows,” says Case IH. “It delivers constant application rates and spray pressures, even with speed changes and in turns and irregularshaped fields.” Case IH product manager Pete McCann says managing the droplet size and pressure when spray-

ing is crucial to pest control. The company launched the technology in 1998. “The most important advantage of AIM Command is the ability to control the pressure in the boom independent of the chassis speed,” McCann says.

“This gives the operator the advantage of being able to balance coverage and drift for their particular field conditions on the fly, saving time, increasing [coverage] per day, and maximising yield potential like no other system.” The AIM Command Pro technology adds sev-

eral benefits to the AIM Command system, notably “its ability to maintain constant pressure for a consistent droplet size”. The individual nozzle control minimises skips, preventing over-application and crop damage. “As the nozzles pass over previously applied

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or unapplied areas, each individual nozzle turns on or off as needed for the application specified, making it easier for growers to balance coverage verses burn in long point rows or around pivots or obstacles,” says McCann. The AIM Command Pro also has a new “turn

compensation” that allows individual nozzles to match the rate for that nozzle’s speed through the field relative to its position on the boom during a turn. “Turn compensation adjusts for different speeds across the boom during turns, providing a

consistent and accurate application rate. The programmable ‘soft’ boom configuration also allows the operator to customise boom configurations for, say, fence row or wheel track configurations.” www.caseih.co.nz @rural_news facebook.com/ruralnews

RURAL NEWS // FEBRUARY 17, 2015

MACHINERY & PRODUCTS 45

Vintage machinery on show at Levin Hundreds thronged Levin’s annual vintage machinery event, stepping back in time to admire an amazing array of tractors, bulldozers and farm equipment, all beautifully preserved. Peter Burke attended with camera and notebook.

WORKHORSES FOR A NEW GENERATION ■■

1 – Ian Skeet, from Otaki, driving his vintage McCormack Farmall tractor, cleans up a paddock of oats, allowing a team of Clydesdales to plough more easily. Skeet has four other vintage tractors, the Farmall being the oldest of its type at the show.

■■

2 –Stephen Muggeridge, from Featherston, brought his team of Clydesdale to demonstrate ploughing and harrowing. His father was also a Clydesdale enthusiast. The horses are also in demand for weddings and galas.

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■■

3 –One of the oldest exhibitors was Peter Trotter (81) with a Massey Harris. He has worked all his life as an agricultural contractor in Horowhenua district.

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RURAL NEWS // FEBRUARY 17, 2015

46 MACHINERY & PRODUCTS

Aussie farmer tickled pink with his blue machines CHRIS DINGLE

AUSTRALIAN FARMERS Roger and Amanda Heath knew they would need to buy new machinery when they recently bought the family dairy farm from Roger’s parents Peter and Janice. Roger and Amanda, with their six children, milk 300 Jerseys and some Illawarras on 260ha with a 22ha run-off leased block for the heifers, at Bookaar near Camperdown, western Victoria. It is a fourth gen-

eration dairy, started by Heath’s great, great grandmother on 40ha and he has been there for 21 years, leaving school at 15 to come home to do the milking and do his farm apprenticeship on the place. “We previously had a New Holland TS100 tractor which is still going strong on the farm after 10,000 hours. It was the main tractor and will now be kept for feeding out, raking and baling”, explained Mr Heath. In April last year they

bought a New Holland T5.105 with an MX frontend loader through the Swayn & McCabe dealership at Colac. “The 112hp is the ideal size for us. We chose this New Holland model because it is a basic tractor and because of the reliability that we got from the old tractor. “It had to be easy to use; we have one full-time operator, Tyson Osborne, and he is the main operator of the machine. It runs well with great visibility, it’s hard to fault.

The hydraulics are very quick.” The recently-released T5.105 has a 3.4L 4-cyl engine which is Tier 4A emission compliant and utilises New Holland’s cooled exhaust gas recirculation system and a diesel particulate filter. The common rail system for diesel engines was first introduced to farming by New Holland in 2003, and they claim the benefits in comparison with conventional engines include reduced engine noise, better com-

Roger Heath

bustion, higher engine power density and lower emissions. The tractor runs a 12x12 transmission with electro-hydraulic power

shuttle which makes operating a front-end loader much easier. The hydraulics have an open-centre system with tandem gear pumps providing a combined total flow of 99L/min. Remote levers are within easy reach on the ergonomic CommandArc console. “This is the first tractor we have had with a front loader, and we should have had one 20 years ago”, says Heath. “It’s amazing how many extra jobs you can find for the loader; it saves time and is very convenient.” They feed pellets in the bail to the cows in their 20 a-side swingover herringbone shed and meal to the yearlings and calves. “Filling the pellet feeders is easy with the loader; the Quick Hitch takes about a minute to drop the forks and put on the bucket. “It’s halved the time in changing over to the bucket. Mechanically it is a simple quick fix.” Heath is passionate about his cows, with a big interest in the stud side

through their Wanstead Jersey stud, started by his great grandparents. “I just love the cows, always have.” He has been a classifier with the Jersey Association for 11 years, and gets to see lots of the country. They’ve had a very ordinary season for hay. “We made all our own silage of 600 bales; we usually do 1000, and have been buying in hay. We normally work on 1000 bales of silage and 1000 of hay. The rain shut off in early August; we always usually get a spring.” They need to milk 300 cows for debt replacement. They run a selfreplacing herd and will bring 100 new cows into the shed this year. They would like to sit at 300 cows comfortably but will need to increase numbers in the next few years, probably up to 340. As part of their upgrading program automatic cluster removers and stall gates are on the list, as will be a new feed system. www.newholland.co.nz

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emember when washing machines and refrigerators lasted a generation? And tyres lasted for years too? Things were made to last back then. Now it seems things are made to wear out. The reason for this is original tyres fitted to new vehicles are made to the vehicle manufacturer’s price. This may result in a compromise on the tyre performance and life. Cooper Tires are better value. One tyre company, continuing to construct quality aftermarket tyres that last, is Cooper Tires. Drivers choosing quality American made Cooper Tires are finding they are getting a lot more mileage and better value for money than

original tyres. This is because Cooper Tires make tyres that last without compromising on high quality tyre components. Cooper Tires are only sold through appointed local tyre professionals, so they know your conditions and can advise the right tyre for the job.

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RURAL NEWS // FEBRUARY 17, 2015

MACHINERY & PRODUCTS 47

All steamed-up and ready to bale AN AMERICAN lucerne moistening system could help New Zealand farmers and contractors deal with drought during hay baling. Waiting around for natural dew is a thing of the past, the company says. Its DewPoint 6110 dew simulator for big square balers applies steam to dry hay at the baler. Hay may then be baled any time the crop is dry enough. The machine, developed by grower Dave Staheli, is made by Staheli West

Inc, Cedar City, Utah. The DewPoint 6110 sits between the baler and tractor as part of a one-pass operation. Steam is injected through manifolds into the hay as it is lifted from the windrow to the baler pickup and further as it passes through the feed chamber of the baler. Four litres of water will produce about 6500L of steam, allowing an operator to add 19-26L of water to one

tonne of hay. When the injected steam contacts

the dry crop material it condenses and bonds with other water molecules in the vicinity. Unlike when water is sprayed on hay to simulate dew, steam is absorbed instantly, retaining leaves and softening the hay. The DewPoint 6110 makes higher quality, denser bales and increases baling capacity, says Dave Staheli. A grower baling 16-20ha/day with one baler can easily cover 80-100ha/day with a baler and a DewPoint machine,

A N E W A P P R OAC H TO PRODUCTIVIT Y

RETRIEVE THOSE TYRES FROM SILAGE PITS GARETH GILLATT

TYRES ON maize and silage stacks could get the heaveho in favour of UK-made Secure Covers, says Secure Cover System (NZ) sales manager Peter Wrightson. These use knitted textile held down by gravel bags, seen replacing tyres on stacks in England, Europe and America, he says. They are clean, safe and don’t cost the earth. Tyres – dirty and heavy to handle – also present a risk of wire being eaten by livestock, causing injury to digestive tracts. Sometimes this would be treatable but if wire were to pierce an animal’s stomach wall it would likely need to be put down. Also, farmers covering maize and silage stacks with soil or limestone can struggle to retrieve feed cleanly especially from top of a stack. Secure Covers are made of knitted, UV-stabilised polyethylene mesh. The cover is placed over the usual polythene silage sheet and weighed down with 15kg gravel bags. Wrightson says the system provides an effective seal: the fabric withstands wind, ensuring the cover sheet stays in place over the feed. The knitted mesh is strong and carries a 10 year guarantee. After use the cover folds up to a bundle about 1m square by 300-400mm thick. Wrightson recommends using pea gravel to fill the gravel bags, but says farmers can use anything that’s bigger than the pores in the bag. Feed barn builders DesignMax, Waiuku, sell the covers in Auckland region. Wrightson says customers grow their usage of the covers year by year. “We get a few more local dairy boys using it every year. They tend to use tyres with the netting in the first year and add more bags and nets in subsequent seasons.” POW0451D

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The new 5 series tractors from Deutz-Fahr deliver unparalleled on-farm productivity with industry leading features like cab suspension, Stop & Go, 4-wheel braking, an ultra-clean tier 4 engine and a super quiet, ergonomically designed cabin. The 5 series provides the benefits of a big tractor in a compact, muscular 100-130Hp tractor ideally suited to New Zealand farming. Call your local Deutz-Fahr dealer for a demonstration today, and prepare to be impressed.

he claims. Product consistency is said to be high. While in the cab, the operator can customise the steam application depending on how dry the hay is. Each manifold can be controlled separately. “Moisture content is consistent in each bale, and the bales tend to be higher in quality because of higher leaf retention,” says Staheli. The company seeks a New Zealand buyer or distributor. – Marie Sherry

RURAL NEWS // FEBRUARY 17, 2015

48 MACHINERY & PRODUCTS

Determining friend from foe ALAN HARMAN

GROWING PLANTS will be able to communicate with a US-developed robotic cultivator that can distinguish ‘friend’ from ‘foe’, intended to make it easier for vegetable grow-

ers to kill weeds. Prof David Slaughter of the University of California Davis department of biological and agricultural engineering says the fiveyear project will address a long-running weed problem. “Machines can recog-

nise a weed, and they can recognise a crop plant, but they have trouble distinguishing one pattern from another when they are co-mingled, as often with weeds and young crops, particularly when traveling at a typical tractor speed of

1m/sec or faster,” Slaughter says. Slaughter has a US$2.7m grant from the US Department of Agriculture to design a robotic cultivator to remove weeds in commercial fields much as gardeners pull

Fluorescent seedlings will help a robotic cultivator target weeds in planted fields such as this one in California’s Salinas Valley. (UC DAVIS PHOTO BY STEVE FENNIMORE)

weeds in their own backyard – but labour-free and cheaply. His ‘smart’ cultivator has small knives that

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reach out to uproot weeds and retract to leave crops intact. It will weed the beds of any row crop, especially well in wide beds of densely seeded crops like spinach and baby lettuce, which can turn green almost overnight with weeds and leafy crops. Steve Fennimore, a weed specialist with the university’s department of plant sciences, says current vision-sensing mechanical cultivators can sometimes recognise weeds along the edges of wide beds, or seed lines, but they get lost in the middle. “Workers often have to go back through and handweed them.” The new cultivator will distinguish friend from foe through a safe, simple seed coating. The plants

will signal the cultivator by emitting a faint, fluorescent glow that will appear when seedlings emerge and are most vulnerable, then vanish as plants grow and can out-do weeds for sun, water and nutrients. “It won’t involve biotechnology or any genetic engineering,” Slaughter says. “The seeds will be coated with a safe, inert, fluorescent material.” To develop the seed coating, Slaughter’s team will work with the university’s seed biotechnology centre and Aginnovation, a California company. Especially this gear will suit automated lettuce thinners, machines that drive through heavily seeded fields and remove all but the most viable plants.

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■■

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RURAL NEWS // FEBRUARY 17, 2015

MACHINERY & PRODUCTS 49

New side x side suits farmers POLARIS INDUSTRIES reckons it has ‘upped the ante’ in the side x side category with its new M1400, aimed at the light commercial market. It has 2WD with turf-mode, turf tyres and is powered by a 31hp Pro-Star engine. “The capabilities of the M1400 are unmatched in its class, with a payload of 635kg, towing capacity of 680kg and rear tray capacity of 499kg,” the company says. The M1400 has electronic fuel injection, independent front and rear suspension and a top speed of 42km/h. Fuel capacity is 34.1L. A notable feature is its flat-bed tray and options such as electric bed tilt, cab accessories and rear box, sides and carrier. Polaris says it offers the industry’s largest range of accessories, and its lock-andride accessory range can be attached and detached “in seconds”.

The machine is 144cm wide, and has a 4.3m turning radius. In turf mode it is very agile and versatile. “We already have an industry-leading range of 15 models with ROPS, however we continue to innovate and develop models,” says Polaris New Zealand country manager, Alan Collins. “The M1400 is a great example of a vehicle that offers value and versatility to light commercial users – lifestyle blocks, vineyards, councils, golf courses, schools, etc. “We have had great success with our heavy duty range – designed for heavy users – and now products such as the M1400 and the Ranger ETX suit light commercial and agricultural or lifestyle applications. Price: $11,650 + GST.

The Polaris M1400 shown with optional rear box accessories.

www.polaris.co.nz

Free wind power trial A WIND-POWERED electricity generator, which uses a funnel to direct wind to a turbine, is offered to farmers on free trial. PacificWind vice president Reza Sehdehi promotes the Invelox system as a new form of generation that brings the wind to the generator instead of putting the generator in the wind. A funnel draws wind through pipes, down into a turbine-generator system. A single tower can generate up to 25mW at 2c/kWh, the firm says. The equipment is said to incurr 50% lower maintenance and operating costs, half the installation costs and 10% the land area of traditional wind systems. The generators will tick over in wind only 3.2km/h; traditional generators need at least 12km/h. PacificWind is looking for large-scale farmers and horticulturists interested in installing wind generation. Ideally it would like to install a system on a farm using at least 3600kWh/month and wanting to produce their own electricity. Pacific Wind will cover the cost of installation and maintenance for the period of the trial, the farmer only paying if the system hits all their targets. Tel: 09 8460174 www.pacificwindenergy.co.nz

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RURAL NEWS // FEBRUARY 17, 2015

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RURAL TRADER 51 FLY OR LICE PROBLEM?

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RURALNEWS

Northland Field Days

TO ALL FARMERS, FOR ALL FARMERS

FEBRUARY 17, 2015: ISSUE 578

www.ruralnews.co.nz

DARGAVILLE FEBRUARY 26-28TH

Fresh look at farming for youth GARETH GILLATT

THE 2015 Northland Field Days will do much for young Northlanders, says committee president Lew Duggan. From February 26-28 people from Northland and beyond will flood into Dargaville for the field days, an event offering plenty to young people, notably a practical look at how they can get into farming and forestry. Career days, scholarships and the return of the Northland Young Farmers will be features of the event. The committee is offering another $10,000 in scholarships, towards education or to support research into opportunities in the

region’s rural sector. Last year, for the first time, the committee awarded $10,500 scholarships to seven students (18-20) from

Youngsters looking for a start in farming, forestry and construction will get a close look at these careers. Thirty two high school students from Kai-

“With young people of quality entering agriculture in Northland, I think the region has a bright future.” Whangarei, Wellsford, Hikurangi and Matawaia. Competition was tough among the applicants, Duggan says. “Bright young men and women gave it their best last year to get the grants. With young people of this quality entering agriculture in Northland, I think the region has a bright future.”

para, Whangarei, lower Far North and Rodney will learn about operating diggers, trucks and construction equipment. The aim is to show them what it’s like to work in these industries. “We’re looking forward to seeing some of the area’s brightest students at the field days, where they’ll learn about

New Zealand’s most exciting and essential industries,” says Duggan. The event will also see the return of the Northland Young Farmers. The Kaipara branch has played a big part in the field days development: they organised and ran the first one at Dargaville racecourse in 1985. Duggan is looking forward to the event reaffirming its connection to Young Farmers, given its huge contribution to agriculture. “Young Farmers has played a huge part in connecting and supporting rural communities so it’s good to see them taking an interest in the field days. We hope we can work closer with members in the future.”

introduce new products. Visitors will access the field days via a pedestrian friendly walkway, buying tickets at newer, smarter gate facilities. And a new permanent toilet block will add to their comfort. “The Northland Field Days grounds have been

And with the grounds having been almost booked out by November 2014, Duggan expects something for every visitor, especially the attraction of new machinery: John Deere, Fendt and Indian farm machinery maker Mahindra will

improved and added to for 10 years,” says Duggan. “And while a toilet block and better pedestrian access are the most ambitious changes to date, these will pale against the improvements we have planned for the near future.”

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$15 adult $5 child (5 - 16yrs) Under 5 years free State Highway 14, Dargaville www.northlandfielddays.co.nz

S e e y o u t h e re !

DAILY GATE PRIZES TO BE WON

RURAL NEWS // FEBRUARY 17, 2015

2 NORTHLAND FIELD DAYS

Indian giant grows its tractor range GARETH GILLATT

INDIAN FARM machinery maker Mahindra will show its expanded tractor range, including new offerings at both ends of the power spectrum, says national sales manager Russell Burling. The company will launch its 20-24hp eMax tractors and the mForce 100hp, its first large machine in New Zealand. At 100hp the mForce

100P will meet the “known largest demand in the New Zealand market – for 90-120 hp tractors,” Burling says. “They’re used by everyone… sheep and beef farmers, and dairy farmers; we’ve been were looking forward to getting a model in.” With power coming from a 100hp 4-cyl Perkins 4400cc

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Visit Longveld at field days to hear about immediate and future savings. Find out how Longveld has helped farmers like Carl and Ally Steiner to improve profits and productivity by making the switch to gas in their dairy shed with Dairy Hot Water, and by installing Iron Out, the low maintenance, non-chemical, system that drastically reduces iron levels in your farm’s water supply. The long and the short of it is a small talk with Longveld can save your farming business big bucks.

Come talk to the guys from Longveld at the Northland Field Days from 26-28 February at site #283.

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turbo diesel engine, this model has plenty of power, managed by a 32x32 power shuttle transmission including eight creeper gears. The loader can lift 1870kg and the rear 3-point hitch can carry a maximum of 3110kg. The designers have kept simple the layout of the large, double-door cab, but haven’t skimped on features farmers want, offering hydraulic controls for the three point linkage on the left and right of the tractor. Burling says the three year, 2000 hour warranty

should be an attractive offer. And while the new eMax series (22-25hp) might appear to be the polar opposite to the larger tractor, they offer more than one might imagine. The full chassis rail, Tier IV eco-friendly engine, and highly engineered drawbar and 3-point linkage means users are essentially getting the strength of a full-sized tractor inside a compact. “It’s definitely stronger and better,” Burling says. Tel. 0800 282 726 www.mahindra.co.nz

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RURAL NEWS // FEBRUARY 17, 2015

NORTHLAND FIELD DAYS 3 John Deere says it has paid close attention to NZ conditions in developing its baler-wrapper.

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Variable balewrapper had Kiwi input GARETH GILLATT

A BALER-WRAPPER combo and new tractor transmission will be a crowd puller on the John Deere site at the Northland Field Days, says agent Cervus Northland manager Tim Ormrod. The products are the John Deere 960 variable chamber-Goweil balerwrapper combination and the new 7R series tractor with E23 automated powershift transmission. Launched three seasons ago, the baler is popular in New Zealand largely because of this country’s role in its development, Ormrod says. It was developed partly in Australia, but the company paid close attention to New Zealand conditions and concerns. “They made an effort to talk to us about the changes needed. They have listened to us over the last couple

of years and we now have a good machine tested in New Zealand conditions.” He says the variable chamber allows operators to set whether they make a bale with a soft or hard core, while also allowing them to make a range of different types of bale from different forage types. “The baler can make such a great bale out of everything from straw to damp silage.” We have used the Goweil G5040 wrapper due to its reputation and our existing business relationship with Webbline, the importer of Goweil wrappers. With hydraulic brakes and loadsensing hydraulics the wrapper has a notable bale transfer system. It gives trouble-free bale transfer on varied terrain. Its plastic pre-tensioner system can save up to a dollar per bale on plastic costs, Ormrod says. “We’ve

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got a number of Northland contractors looking seriously at it.” Ormrod says the new 7R series tractors with the E23 automated powershift transmission will be popular with operators who spend a lot of time doing drawbar work. “Guys who are pulling discs or silage wagons should get a lot of value out of this.” The E23 system is a fully automatic transmission with 23F and 11R. The maker’s Efficiency Manager allows the operator to pre-set working speeds and the transmission keeps the engine at optimal rpm to save fuel. With three operator modes and 14 gears between 2.5 and 16km/h the transmission the tractor will be suited to a number of tasks, Ormrod says. Tel: 0800 333 734 www.cervusequipment.co.nz

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RURAL NEWS // FEBRUARY 17, 2015

4 NORTHLAND FIELD DAYS

Plenty of gear on show at event VISITORS TO Northland Field Days machinery, product and information sites will see and hear more than ever this year, say the organisers. Exhibitors are promising lots of gear, some never seen before in New Zealand, says the event coordinator Meagan Edmonds. Businesses had rushed

to book at least 90% of available sites by late January, she says. “They rushed to book a spot…. [Most of] the event ground filled up in less than seven months”. “Exhibitors got involved quickly for this event. Companies have also made plans to bring their biggest, brightest and latest machinery and

products to the event. Many exhibitors will launch brand new inventions.” The Indian giant Mahindra will launch new vehicles – the Mahindra mForce 100p, the company’s first 100hp tractor in New Zealand, and a 20hp tractor. Cervus Northland manager Tim Osmond

says John Deere also has big plans for the event: he hopes to unveil a new transmission. Edmonds says exhibitors expect to let visitors get their hands on the gear. And several have talked to her about staging live demonstrations. The organisers have worked harder to service visitors looking for food,

household items and tools. “And a new entrance and an increase in visitor facilities will make attending the event more comfortable.” Sponsor ANZ will have four-ATM units and two mobile cash carts, making shopping easy. Early interest is strong in scholarships on offer

by Northland Field Days, Edmonds says. Five scholarships, each for $2000, are offered to agricultural students from Northland. Launched last year, this scheme attracted qual-

ity entries, and Edmonds expects a similar response this year. “Everybody who’s called in seems excited by the prospect of these grants.”

Ring top replaces pigtail A NEW ring top post turns the concept of the traditional pigtail standard on its “curly little head,” says maker Gallagher. The design deals with the nuisance of tangled pigtail posts, making it easier to store, carry and erect temporary electric fences. Product manager Graham Johns says a key feature is its distinctive ring-shaped head. Made from heavyduty glass-fibre nylon, the heads suffer no electrical shorts. And they are light and strong. The company talked to many farmers and did a lot of R&D. “We talked to farmers about what they liked and didn’t like about portable fencing and a common complaint about pigtail standards was entanglement during transport and storage,” Johns says. “Farmers were also frustrated about pigtail heads wearing through, resulting in shorting.” Johns says feedback from farmers who have trialled the new post has been “fantastic”. “We’ve run tests in Taranaki, Waikato and Southland, and farmers love them. Most said they wouldn’t go back to the old standards and one farmer said his staff members argue over who gets to use the new ring top posts.” Gallagher has also redesigned the foot section for more strength and usability. Made from overmoulded glass-fibre for increased durability, the foot will withstand 200kg of tread pressure and will not bend out of shape like a steel foot. The blade-type design of the foot prevents the standard from rotating when erected, and its profile reduces the risk of standards becoming tangled and entrapped during handling and storage. An extended insulated section also provides extra strength and better handling.

RURAL NEWS // FEBRUARY 17, 2015

NORTHLAND FIELD DAYS 5 2-WHEEL

FARM

DEAL Young people will get the chance to experience ‘real world’ farming at the Northland field days.

Hands-on ag experience for keen young Northlanders

NORTHLAND SECONDARY schoolers will get hands-on experience of quarrying, forestry and farming at the Northland Field Days. Thirty two high schools students from Kaipara, Whangarei, Far North and Rodney districts will get a hands-on go at the controls of diggers, trucks and construction gear, and will glimpse the job opportuni14 ties in these industries. Emergency/ This will be held on the Kaipara Gate Evacuation Tractor Vintage Machinery Club’s field days Pull HQ Pull site onTractor the Saturday of the event. Start/Finishof the rt/Finish Alistair McIntyre, author NORWOOD ROAD LANE children’s bookBeer Doug the Digger and 1 51 53 55 57 41 43 45 47 37 39 Tentinto Industry, says founder of Youth 106 108 110 112 104 Northland 96 98 100 92 94 he wanted to102give school F ROADinto career options. REDLINE PLACE leavers A a look

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Road 15m wide

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W 309 311 313 315 317 319 321 323 325 H E Y 340 342 344 346 348 350 352 354 356 NORTHLAND TOYOTA 4WD TRACK Food 347 349 351 353 355 313 339 311 Hall 364 342 344

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says the committee jumped at the idea, seeing it as a good way to get Northland youth into fast-growing industries. “We already offer Northland youngsters scholarships to study farming, so the Youth Into Industry initiative was a perfect fit.” Kaipara Vintage Machinery Club members will help as tutors and in support roes. Students will operate mini-excavators and small plant and equipment, and learn about health and safety, workplace safety, weights and measures, and vehicle safety. Industry personnel will talk about their expertise and help students do paperwork.

First Aid

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“Students are given an opportunity to work alongside industry people in a safe worksite environment.” He floated the idea with Kaipara Vintage Machinery Club members at the 2014 field days; the members were keen. McIntrye and the club patron Bruce Galloway talked to the field Whangarei days committee about hosting a → careers open day at this year’s event. A similar event ran last year at the Prime Site 14x18m Auckland Museum of Transport and Site 14x18m Technology. “Thirty one eager stuMarket Site dents turned up who were so keen Parking they ignored several rain showers to Disabled Parking carry on with activities.” Entrance Boothsdays’ president Lew Duggan Ticket Field

$500

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Offers available until 31 March 2015 or while stocks last. Available at regional Fieldays or participating Suzuki dealers. Prices and cash back amount shown are inclusive of GST. Cash back paid by dealer at time of sale. Offer not available in conjunction with any other promotions.

RURAL NEWS // FEBRUARY 17, 2015

6 NORTHLAND FIELD DAYS

4WDing, shearing, sheep chasing and much more! FOUR-WHEEL DRIVING, shooting, sheep racing and shearing and much more: there’ll be lots to do and see at Northland Field Days, February 26-28. The venue is Dargaville on the picturesque Wairoa River, upstream from the mighty Kaipara Harbour. It’s a two-three hour drive from Auckland, and a mere 40 minutes from Whangarei. Exhibitors and organisers have worked overtime on more new events than ever, says the

Exhibitors and organisers have worked overtime on more new events than ever. field days president Lew Duggan. And as usual the field days will be a mix of new and old events. Northland Toyota is building a 4WD track next to its site, to allow visitors to power a Toyota 4WD in real-world conditions. Spokesman Nigel Gilmour says people trying out a Toyota Hilux, Land Cruiser or Rav4 on the 4WD course should expect to be put through

their paces. “It’s got some axle twisters in there; there’s water, hills and sidings. Drivers will experience challenging approach and departure angles.” Gilmour says the company wants to show off the Toyota Hilux’s role as a ‘workhorse’. The track will let visitors try out the truck in conditions they’re likely to experience any

The logging sports – always a crowd favourite – will be back again this year.

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will also be 45-minute shearing shows. On other sites, competitions include lawnmower races, dog trials, a tractor pull and logger sports. “The events committee have outdone themselves this year,” says Duggan. “Anybody travelling to Dargaville on February 26-28 will miss out bigtime if they don’t attend the Northland Field Days.”

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digital, clay bird shooting event. Friday and Saturday will be jam-packed with activities including the Sheep ‘n’ Show event, a combination of sheep racing, sheep shearing and more. Sheep and Show presents a ‘grand national sheeplechase’ with commentary, pre-race build-up and an offer of prizes for picking the winning sheep. There

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working day. “Our aim is to get people into vehicles to show them what sort of performance they’re capable of in tough conditions. We have always made sure the Hilux stayed true to its origins, able to do what it needs to do when the work demands.” Meanwhile, hunters and target shooters can show off their sharpshooting skills at a

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RURAL NEWS // FEBRUARY 17, 2015

NORTHLAND FIELD DAYS 7

Fence power ‘grunt’, remote water control on display at Gallagher site ENSURE YOUR STOCK Gallagher’s Peter Nation says the company will have new electric fence and water monitoring products on display at Northland.

GA RE T H G I L LAT T

PERMANENT ELECTRIC fence power and wireless water level monitoring will be prominent on the Gallagher site at the Northland Field Days. National sales manager Peter Nation says the company’s high-powered M10,000i fence energiser, and its innovative wireless water level monitoring system, point the way forward in these technologies. Due for retail release in March, the M10,000i has a stored energy capacity of 100 joules and a potential output of 10,000V. It can power 405ha of multi-wire fencing. Part of the Gallagher i Series range of energisers, the M10,000i combines “brute force with incredible intelligence, delivering advanced monitoring capabilities to give farmers peace of mind their animals are where they should be,” the company says. “A good energiser is like an invisible asset protector – making sure valuable animals, pastures and crops are safe and secure,” says Nation. Like other i series energisers, the M10,000i has a controller unit that monitors energiser performance and highlights faults in a fencing system. The controller can be located up to 50m from the main energiser. The waterproof controller displays the energiser’s voltage and current readings and can be used to turn the energiser on or off, set alarm levels and fine-tune operating output voltage. Up to six fence monitors can be installed onfarm and linked back to the central energiser controller to fully monitor a fence system – saving time and giving confidence a fence is working effectively. “Having six fence monitors spread around a farm is a bit like having six staff members out there looking after six different zones, all the time,” says Nation. “The beauty of the i series energiser is that everything is monitored for you, so staff can focus on other jobs. It’s a huge labour saver, especially for larger farms with bigger fencing systems.” The M10,000i can be supplied with an optional remote that enables the farmer to quickly locate faults within a monitored zone, turn the energiser on or off remotely, and test a fence once a repair is completed. An optional SMS controller adds a cellphone dimension: if a fence problem is detected it will notify the farmer immediately via mobile phone. Meanwhile, Gallagher’s wireless water level monitoring system notifies of water leaks. Launched last year, this system gives farmers a close watch on water usage without the high costs of flow monitoring. It measures water pressure in the water vessel, transmitting that data to a wall-mounted or desktop display unit as far away as 4km. Power is by solar. Up to nine tanks can be monitored by one display unit. The display has a 2.8inch colour touchscreen and shows, e.g. abnormal water loss caused by broken pipes or overflowing troughs, number of days of water remaining, and 30-day historical levels of monitored tanks. The system can also alert farmers if the level in one or more tanks begins to decrease rapidly. Tel. 0800 731 500 www.gallagher.co.nz

ARE PRODUCTIVE Meet nutritional needs without selling stock at depressed prices!

Trial shows the profitability of the Advantage Feeders Advanced Adjustment System A documented field trial shows that when lambs feed on Lucerne without any grains while others are offered a supplementary 100g/day of barley from Advantage Feeders, stock offered grain gained 350g/lw/day while those without gained just 250g/lw/day. This means stock can convert all of the grain into live weight gain; a huge return on investment!

With grain costing 4c per 100g ($400/t) and live weight gain equalling 20c per 100g live weight, it’s a great return! The key reason this is possible is that the starch and fibre in the supplement balances deficiencies in high performance pastures and helps animals process excessive protein.

Supplementing the rumen with pellets or cereal feeds ensures the rumen maintains an optimal mixture of different microbes – essential for keeping the rumen functioning efficiently. How does the feeding system stop stock from eating all day? When the Advanced Adjustment System is set to a restricted setting, the animal’s tongue has to enter a 50mm deep slot. Feed will only stick to the animal’s tongue if it has sufficient saliva on it. The tongue becomes

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dry after approximately five minutes and can no longer access the feed. It is common for animals to visit a feeder 10 times/day. They access as little as 15 grams per five minute period.

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RURAL NEWS // FEBRUARY 17, 2015

8 NORTHLAND FIELD DAYS

What’s on... and when! THURSDAY TO SATURDAY (FEB 26-28) Clay shooting Experience the thrill and excitement of shooting clay birds without any risk. Show off your sharpshooting skills.

Sheep dog trials Watch the top sheepdog trialists from Northland face off for best in the region. Since competitions began in 2008 the

field days have attracted Northland’s top dogs and shepherds. Trials - Thursday-Friday; finals – Saturday; ‘human sheepdog’ com-

PPP Feed Systems are specifically designed to handle PKE - guaranteed PPP have Installation Agents from Northland to Southland offering a full back up service Silos Grain silos from 6 tonne to 250 tonnes PKE vibrators – money back guarantee to work! Suitable for PKE, dairy meals and grain Mineral & liquid additive system Utility Augers

Herringbone Feed Systems Stainless steel ensures hygiene is excellent One dispenser per cow, clear dispenser allows plenty of light in shed Non-breakable drop tubes with no blockages in drop tube Sheds from 10 aside to 73 aside, using PKE to dairy rations Feed rates as low as 0.5 kg upwards

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Press Screw Separators A simple solution PPP installed NZs first separator in 2002 Clarifiers available for extra screening down to 80 microns

petition - Saturday lunchtime. Big fun events If your kids want even more excitement, head down to the Big Fun activity zone, filled with such frolics as water walkers and a blow-up playground. The rides aren’t costly and the kids will be entertained for hours. (You may even want a go yourself.) Clydesdale rides Tour the show in style aboard a wagon pulled by three Clydesdale horses. The horses are worldfamous, appearing on television in Hercules and in the movie The Lion the Witch and the Wardrobe. Owner Dan Dufty is an experienced horseman happy to share all he knows about this amazing breed. The rides are free. The route starts opposite the field days HQ on the corner of RD1 road and Farmlands Road. Tractor pull Watch the best-ofthe-best tractor drivers in Northland battle it out over three days

of intense competition. Events include the business house event and the three-legged race. Win your weight in meat At the Trutest site get yourself weighed and enter a draw to win your weight in meat.

SATURDAY (FEB 28) Quad skills, time trial Competitors take turns driving a quad and trailer around an obstacle course in the fastest time. Anyone, from town, country or city, can compete (age 16 and older). Logger sports competition Logging workers from Northland and further afield have entered this contest for 20 years. It’s a hugely popular spectator event. Starts on Saturday at 9am and goes all day. • Free parking is available close to the grounds and regular public transport runs to and from the site. www.northlandfielddays. co.nz

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